Welcome to the Fossil Oil Company Blog for news of interest to our clients and the oil and gas investment industry.
For the first time in over six months oil prices rose to $50 per barrel. Brent crude moved up to $50.19 during morning trading on May 26, the first time that it has hit that point since last November.
The gains add further momentum to a streak that has seen Brent and WTI gain more than 80 percent in value since touching lows in early February at $27 per barrel. For the past few weeks, oil prices bounced around a ceiling at $47 to $49 per barrel, sputtering and struggling to break through that key threshold.
But major supply outages in Canada from the wildfires around oil sands sites in Alberta knocked more than 1 million barrels per day of oil production offline for several weeks. Militant attacks on pipelines in Nigeria has disrupted an additional 800,000 barrels per day. U.S. oil production is down about 500,000 barrels per day since the start of the year, and outages from several Latin American oil producers have also contracted the supply overhang.
Fossil Oil Company is interviewing for a college student intern who is looking for a summer internship for approximately 20 hours a week. We are flexible with your summer school schedule. Job description would include basic administration duties such as filing, sorting, copying, help with incoming phone calls, running errands, etc. We are located in the West Chase District at Wilcrest Dr. and Westheimer.
For more information, please call us at 713-978-7986 or email your resume and references to Sharon Kittler at firstname.lastname@example.org.
The price of West Texas Intermediate (WTI) finally found the bottom in February for this oil price cycle. It won’t be straight up from here, but with global supply & demand heading toward a balance by yearend, we should see higher oil prices.
Later this week, the International Energy Agency (IEA) will publish their monthly Oil Market Report. In their April report, IEA forecast an increase in demand for hydrocarbon based liquid fuels (primarily made from crude oil) of 1,800,000 million barrels per day from the first quarter to the third quarter of this year. If that happens, the global oil market will be back in balance.
On April 25th, Terry Starling from Raymond James presented his firm’s official oil price forecast for 2016 and 2017. Like IEA, Raymond James predicts a significant tightening of the oil market this summer. They believe WTI will reach $50/bbl. by the end of June and spike to $70/bbl. in late 3rd quarter.
For over a year, crude oil prices under $60/bbl. are unsustainable. We’ve seen an incredible decline in drilling activity that is going to result in an acceleration of Non-OPEC oil production declines that began a year ago. The number of rigs operating in North America is now at the lowest level since Baker Hughes (BHI) started tracking it over 70 years ago.
Keep in mind that the United States and Canada are not the only two countries where oil production has rolled over. Oil production in Venezuela was down 188,000 barrels per day year-over-year in the first quarter due to natural declines and an economic crisis (caused by low oil prices). Latin America on the whole lost 441,000 barrels per day in the first quarter. We’ve seen many deepwater projects cancelled, enough to all but guarantee an oil shortage in 2018.
There are many reasons people invest in oil and gas, and profits are generally at the top of the list. When you invest with an independent oil company that has a history of successful drilling, the chances of profits are pretty high. But what a lot of people don’t think about when they think about investments in gas and oil are the oil and gas tax benefits that come along with those profits.
Depending on your income bracket, your other investments and all kinds of other factors, the oil and gas tax benefits may be one of the main reasons you need to consider working with Fossil Oil Company. Many times people have financial advisors or tax accountants who watch the money coming in and the money going out and they can tell you whether your investments are doing you any good when it comes to tax benefits. But sometimes people don’t think about investing in oil and gas as a way to get the most benefit on their end of the year taxes.
We’d like to invite you to talk to the team at fossil oil and discuss the advantages of putting your money into an investment with an independent oil and gas company as opposed to investing in the big oil companies through stocks and bonds. Although we can give you examples of what accredited investors have reported to us about tax advantages, it is not our business to give you tax advice. But what we can tell you is that you really should talk to your financial planner or tax advisor about the oil and gas tax benefits that might be important to your bottom line when it comes to tax season. So why not start out be talking to the team at Fossil Oil at 832-919-6459 and then check out the info with your financial advisors. We’d like to think we can help you expand your income when you work with our team of oil and gas experts.
Investing in oil may be something you’ve thought of doing for a long time, but you didn’t know how to do it. When most people thinking of making an oil investment, they generally think of hiring a stock broker and investing that way. It’s ok to invest in oil stocks, if you know what you’re doing or you have a broker who knows what he’s doing. But you need to realize that any time you add another person to the mix, you’re going to end up paying fees you don’t need to pay. And that’s one more reason to talk to the team at Fossil Oil Company, so you can invest directly with them.
You see, Fossil Oil Company is an independent oil company with a team of oilmen who have years of experience in the exploration and drilling of gas and oil wells. With years of experience, this team is qualified to acquire mineral leases and position themselves to bring high quality gas and oil investment opportunities to accredited investors from all over the country. Lead by an oilman with more than 40 years of industry experience, Fossil’s President, Dennis R. Kittler, was recognized in 2014 with a Worldwide Who’s Who Lifetime Achievement award. When it comes to making an oil investment, there’s no denying that fossil is the team to trust.
One of the most important reasons for making an oil investment with Fossil Oil Company is that you will be directly investing with them, without the need for anyone else to do it for you. You’ll work directly with our oil and gas specialists to choose low risk or high risk wells that meet your own personal investment needs. So call Fossil Oil Company today at 832-919-6459 and let us help you decide which of our current projects is right for you.