Choice Exploration, Inc.

May 17, 2012 – Choice Exploration, Inc.,  Fossil Oil Company’s Operator and Partner in our  Smackover Multi – Oil Well Project,  has advanced its ranking from 100 to 90 in US Private E&P Companies according the Oil and Gas Financial Journal, January 2012. Independent research firm IHS Herold Inc. has provided OGFJ with updated production data for our periodic ranking of US-based private E&P companies. The rankings provided by IHS are based on operated production only within the United States. See List…

Boosting oil production domestically won’t significantly increase the U.S.’s energy security, a new Congressional Budget Office report shows.

The May 9 report stated the U.S. is more vulnerable to disruptions of the crude oil supply than disruptions in other energy supplies due to the country’s reliance on oil for transportation, the Houston Chronicle reports.

Additionally, the CBO believes the country does not have enough fuel diversity for transportation. Instead of finding ways to decrease the price of oil, the CBO recommends the creation of policies to reduce demand for oil and promote alternative options for fuel.

“Policies that promoted greater production of oil in the United States would probably not protect U.S. consumers from sudden worldwide increase in oil prices, even if increased production lowered the world price of oil on an ongoing basis,” the report stated. “In fact, such lower prices would encourage

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With oil prices soaring ever higher, Saudi Arabia stepped in last week and vowed to increase its production by 25% if necessary.

But while that assurance managed to siphon a few dollars off of oil futures, the reality is there’s nothing Saudi Arabia – or anyone else, for that matter – can do about rising oil prices.

In fact, crude is still on track to reach $150 a barrel by mid-summer.

As Saudi Oil Minister Ali Naimi pointed out last week, current oil supplies already exceed global demand by 1 million-2 million barrels per day.

For its part, Saudi Arabia is already breaking its own OPEC-imposed production quota limit, churning out about 10 million barrels of oil per day – close to its 12.5 million barrel capacity.

Yet the effect of that production has been negligible.

Oil is still trading at $106 a barrel on the NYMEX – something that has clearly flummoxed the world’s largest oil producer.

“I think high prices are unjustified today on a supply-demand basis,” said Naimi. “We really don’t understand why the prices are behaving the way they are.”

Naimi and his colleagues may not understand oil’s price gyrations, but Dr. Kent Moors, an adviser to six of the world’s top 10 oil companies and energy consultant to governments around the world, does.

“Despite the excess storage capacity in both the U.S. and European markets and the contracts already at sea, oil traders set prices on a futures curve,” said Moors. “In a normal market the price is set at the expected cost of the next available barrel. During times of crisis, on the other hand, that price is determined by the cost of the most expensive next available barrel.”

And with tensions with Iran running high, we are currently in crisis mode. Pushed to the brink by Western sanctions, Iran has threatened to close the Strait of Hormuz – the narrow channel in the Persian Gulf through which 35% of the world’s seaborne oil shipments and at least 18% of daily global crude shipments pass.

If Iran closes the Strait of Hormuz, crude oil prices will pop by between $30 and $40 a barrel within hours. Should the strait remain closed for 72 hours, oil trading will push up the barrel price to $180 in New York, and closer to $200 in Europe.

The situation is further complicated by potential military conflict – such as an Israeli air strike on Iran’s nuclear facilities.

For more information on opportunities to benefit from the current energy market, Read more…

The Saudis have pledged to bring oil prices back down to a “fair” level…

But let’s not confuse their motivations here — the 12 members of OPEC have just one thing on their minds: money.

No matter how generous and charitable they decide to be in raising oil exports going forward, the Saudis don’t care how much you and I are shelling out to fill up our gas tanks.

OPEC’s political game of seesaw has been playing in the media for decades.

What reason do we have to believe they’ll ever grow a conscience?

Years ago, they were adamant that $60 per barrel was the right price. A little later, that changed to $80 per barrel. Today $100/barrel is the right price for them.

Tomorrow — who knows?

See more…

There are no known alternative energy sources that can compete with oil and natural gas due to the energy output of a hydrocarbon and the laws of thermodynamics with respect to fuel cells and hydrogen. Oil and natural gas will be the fuel of choice for the next fifty years even though every known alternative energy method will be needed. Based on analysis by experts all alternative systems could account for only 40% of our energy needs for the next fifty years.

WOULDN’T I DO BETTER BUYING EXXON OR SHELL COMMON STOCK?

All wealth for companies or individuals is made at the well head. Those who typically become rich are those who own oil interests in a good economic producing oil and gas field.

The smaller independent oil companies find over 65% of all new oil wells, not the major oil companies. The majors left behind thousands of smaller oil fields which, are now becoming valuable as shortages loom until the new giant oil fields are found. There will be an 8-10 year window of opportunity to create great wealth through direct participation programs.

WHAT ARE THE TAX ADVANTAGES?
The United States Government offers 100% tax write offs for what is called intangible drilling costs (IDC). In other words, investors who pay for the drilling of a well in the year of the investment will be able to write off  65-75% of the investment regardless of the outcome of the well.

Fossil Oil Company has an exciting 3-D based oil well investment JV along the Texas Upper Gulf Coast.  For more information about our current project click HERE