Sign In  |  Register  |  About Daly City  |  Contact Us

Daly City, CA
September 01, 2020 1:20pm
7-Day Forecast | Traffic
  • Search Hotels in Daly City

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Why Increased U.S. Oil Production Could Ultimately Cushion Price Hit To Economy

Palm Beach, FL – March 10, 2022 – FinancialNewsMedia.com News Commentary – Now that the U.S. government has officially banned purchases of oil from Russia, will U.S. production rise to the challenge? Many in the industry say that yes it can and say it can go faster if regulations don’t deter their progress. Bloomberg said that: “Any increased capital spending by U.S. oil and gas producers in response to the surge in crude price should help soften the blow to the economy from an expected pullback in consumer spending. It just won’t be anytime soon.  Americans in the last week have witnessed an unprecedented weekly surge in gasoline prices, now up to $4.17 a gallon based on American Automobile Association data. Prices are likely to go up even more as President Joe Biden details plans to ban imports of Russian energy.”  Economists at Credit Suisse Group AG and Barclays Plc say that’ll incentivize greater domestic production, which should help alleviate some of the economic fallout.  “We do believe that higher oil prices will lead to increased domestic energy production which could help offset higher oil prices or any potential U.S. embargo on imports of oil from Russia,” said Michael Gapen, managing director and head of economic research at Barclays.  At the same time, “increases in domestic oil production are likely to take time and most producers are exercising greater capital discipline than before. It may take six to nine months to see a more meaningful increase in U.S. shale output,” Gapen said.  Before the start of war in Ukraine, producers were gradually adding to rig counts amid shareholder demands of capital discipline and government policy geared toward green energy. Moreover, supply and labor constraints have also been headwinds to a faster pace of production.  Active Mining Companies in the markets today include China Dongsheng International Inc. (OTCPK: CDSG), Houston American Energy Corp (NYSE: HUSA), Imperial Petroleum Inc. (NASDAQ: IMPP), Enservco Corporation (NYSE: ENSV), Nine Energy Service, Inc. (NYSE: NINE).

 

Still, since the U.S. exports just about as much petroleum as it imports, and given the enhanced development of U.S. shale production, the country has the ability to ramp up its own production, the economists said.  Bloomberg Economics concluded: “The Biden administration has a powerful tool that could both maximize the cost to Russia for invading Ukraine and lower domestic inflation, and it’s not sanctions. We estimate that increasing U.S. shale production could replace U.S. oil imports from Russia, and even a substantial share of Russia’s exports to Europe.”

 

China Dongsheng International Inc. (OTCPK: CDSG) BREAKING NEWS – CDSG Signs Development Agreement for Oil Field in Frio County, Texas (OOIP) 15-27 Million Barrels –  China Dongsheng International Inc. (the “Company” or “CDSG”) is pleased to announce that the company has signed a Strategic Partnership with Stallion Energy Group, Inc. (“Stallion”) of Houston Texas, for a Working Interest to develop oil production in Frio County, southwest Texas.

 

The drill-ready leasehold is located within an area of two of the most productive oilfields in the San Antonio Oil and Gas district, with over 100 million barrels and 400 billion cubic feet of gas produced. The multimillion-barrel potential of the project was identified after critical evaluation, mapping and analysis of a large petrophysical database of well logs, mud logs and production analogues completed by Texas based team of petroleum engineers and a geologist with a combined 90+ years of experience.

 

The plan is to drill vertical wells using a 40-acre spacing within a 640 acre area of the lease portfolio acquired by Stallion. Our primary production target will be the shallow, oil rich Olmos Formation, which has been a consistent oil producing strata and continues to be an active exploration target in the area.

 

The target horizon offers low risk, shallow conventional oil production from several pay zones identified by local offset logs. Texas American Resources (now Trinity Oil & Gas) previously computed volumetric reserves for the Olmos in the direct lease area to have original oil in place (OOIP) of 15-27 million barrels per 640-acre section. At present, this volumetric calculation has not been re-verified by Stallion.

 

CDSG’s Chairman, Harp Sangha, stated, “With our objective of providing energy needs for today and tomorrow, this project provides an incredible opportunity for us to rapidly enhance the domestic energy output during a time of dire need. Solid projected revenues from production from this field were originally modeled on $55/barrel in 2021, thus at this time, we see an incredible opportunity for well-timed production and robust economics for now and the longer term.”   CONTINUED…  Read this full release for China Dongsheng International at:  https://www.financialnewsmedia.com/news-cdsg/

 

Other recent developments in the mining industry include:

 

Houston American Energy Corp (NYSE American: HUSA) traded over 49 Million shares on Wednesday at $7.46 by midday up over 7% while closing at $7.65 per share up over 10% trading over 59.5 Million shares by the market close.  HUSA was also up in afterhours trading as well.  Houston American Energy Corp., an independent energy company, acquires, explores for, develops, and produces natural gas, crude oil, and condensate. Its oil and gas properties are located primarily in the Texas Permian Basin, the onshore Texas and Louisiana Gulf Coast region, and in the South American country of Colombia. As of December 31, 2020, the company owned interests in four gross wells.

 

Imperial Petroleum Inc. (NASDAQ: IMPP) recently announced that it has entered into an agreement to acquire two M.R. refined petroleum product tankers, built at SLS Shipbuilding, South Korea in 2008 and at Shin Kurushima Dockyard, Japan in 2011 respectively, with an aggregate capacity of approximately 97,000 dwt, from Brave Maritime for an aggregate purchase price of about $31 million, with delivery on a charter free basis expected by end of May 2022. The Company expects to finance the purchase price with cash-on-hand and new senior secured bank debt for which it is in discussions to secure with an international financial institution. The transaction with Brave Maritime, which is affiliated with members of the Vafias family, was approved by the Company’s audit committee comprised of independent directors.

 

Imperial Petroleum Inc. is a ship-owning company providing petroleum product and crude oil seaborne transportation services. The Company currently owns three M.R. refined petroleum product tankers and one Aframax crude oil tanker with a total capacity of 255,804 deadweight tons (dwt). Imperial Petroleum Inc.’s shares of common stock and 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock are listed on the Nasdaq Capital Market and trade under the symbols “IMPP” and “IMPPP”, respectively.

 

Enservco Corporation (NYSE American: ENSV), a diversified national provider of specialized well-site services to the domestic onshore conventional and unconventional oil and gas industries, recently reported financial results for its third quarter and nine-month period ended September 30, 2021.

 

“Our renewed growth momentum carried into the third quarter as the industry continued to recover from the pandemic impact and steadily rising commodity prices drove increased customer activity and higher utilization rates for our fleet. As in our second quarter, we generated solid growth in all service segments in the third quarter, including hot oiling, frac water heating, acidizing and non-oilfield services,” said Rich Murphy, Executive Chairman. “Rig counts and wells drilled in the third quarter increased by double digits on both a year-over-year and sequential quarter basis, and these favorable tailwinds should help position us to sustain our revenue momentum during our fourth and first quarter heating season.”

 

Nine Energy Service, Inc. (NYSE: NINE) recently reported fourth quarter 2021 revenues of $105.1 million, net loss of $(15.7) million and adjusted EBITDA of $4.6 million. For the fourth quarter 2021, adjusted net lossB was $(15.7) million, or $(0.52) adjusted basic loss per share.

 

The Company had provided original fourth quarter 2021 revenue guidance between $92.0 and $100.0 million, with actual results falling above the provided range and representing a sequential revenue increase of approximately 13% quarter over quarter.

 

“We outperformed our Q4 revenue guidance due to strong performances in both cementing and completion tools, both of which outperformed market drivers this quarter,” said Ann Fox, President and Chief Executive Officer, Nine Energy Service. “We saw activity and pricing improvements across most of our service lines, which is reflected in our 13% increase in revenue quarter over quarter.”

 

DISCLAIMER:  FN Media Group LLC (FNM), which owns and operates FinancialNewsMedia.com and MarketNewsUpdates.com, is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels.  FNM is NOT affiliated in any manner with any company mentioned herein.  FNM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security.  FNM’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities.  The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material.  All readers are strongly urged to perform research and due diligence on their own and consult =a licensed financial professional before considering any level of investing in stocks.  All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release.  FNM is not liable for any investment decisions by its readers or subscribers.  Investors are cautioned that they may lose all or a portion of their investment when investing in stocks.  For current services performed FNM has been compensated forty five hundred dollars for news coverage of the current press releases issued by China Dongsheng International Inc. by a non-affiliated third party.  FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

 

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.

 

Contact Information:

Media Contact email: editor@financialnewsmedia.com – +1(561)325-8757

 

SOURCE:   FinancialNewsMedia.com

The post Why Increased U.S. Oil Production Could Ultimately Cushion Price Hit To Economy appeared first on Financial News Media.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 DalyCity.com & California Media Partners, LLC. All rights reserved.