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Could WTI average more than $80/bbl for the remainder of 2023? Perhaps.
Considering refinery capacity will continue to be limited for many years to come with supplies remaining tight for the foreseeable future, strong, stable, and secure demand should support prices in the mid-eighties.
A big focus for the intergrated oil majors continues to be growth in production, and strengthening of their shareholder base through acquisitions, increased dividends, and stock buybacks.
Even the smaller independents are getting in on the action. Thus once again, I point out that the Gulfslope focus on acquiring producing assets is the right call.
In the 1st Quarter of 2023, “Arena Energy, a leading independent oil and gas exploration company focused on the Gulf of Mexico Shelf, announced it has closed on the acquisition of Cox Operating, LLC's interest in two fields located in the shallow waters of the Gulf of Mexico.”
So the clouds are starting to break up over the GOM and the blue sky and sunshine is radiating through. Always a good omen for the aspirations of Gulfslope Energy.
Mrs. Smith
Those that held their long positions in the oil industry are still smiling. A big bounce back in price, a dividend, and a hedge against inflation. How is that inflation treating your dollars?
Interest in U.S. production is moving along and picking up the pace perhaps. Rumor has it Exxon may purchase Pioneer Natural Resources. “Texas-based Pioneer is claimed to be the leading oil producer in the Permian Basin and generated $8.4bn in cash surplus last year.” I see this as an indication that Exxon recognizes the future stability of WTI, or there would be no interest in a multi-billion dollar deal. This will transfer to the GOM as well.
Reminder, profitability for shale drillers is around $60/bbl. This is largely due to the fracking costs. But, offshore shallow GOM is noticeably lower. So the Gulfslope focus on buying current GOM production appears to be a good call.
Bottom line, the EIA’s forecast through 2050 predicts: crude oil and natural gas will continue to play a major role in the energy mix, EVs will occupy a minor portion of the transportation market, and natural gas will still maintain it’s position as a critical source for electricity generation (which includes the 1,000% increase in the reliance on solar for electricity generation). So, the future of oil drillers is assured by the forecast of their biggest opponent.
The time interval of a trade for many on this board is preferred to be short. The shorter the better. And that is okay. It is just that ‘short’ will happen to be the size of profit on that trade too. And although many here know of my disdain for ‘penny ante’, it really should not bother me if it does not bother anyone else.
Link to Exxon article:
https://www.offshore-technology.com/news/exxon-pioneer-natural-resources-deal/
Mrs. Smith
At the time of Easter, an article such as this seems very appropriate. Yes, the oil and gas industry is poised for new life and a rebirth.
‘It’s Not Just Willow: Oil and Gas Projects Are Back in a Big Way’
Link to chart and article:
https://www.nytimes.com/2023/04/06/climate/oil-gas-drilling-investment-worldwide-willow.html
Mrs. Smith
While on the subject of drill pipe, I recall a trip to a manufacturing plant. I was miserable. It was hot, noisy, stuffy, stinky, sweaty, and the air had particulate floating around in it. I did not want to breathe any of that air, but sadly, had no choice. That facility really needed better ventilation.
Our tour was escorted to a machine involved in something called ‘inertia welding’. I had never heard of it, was not interested in it, and was ready to leave just as soon as possible. The tour guide explained that a ‘tool joint’, or the threaded part of a joint of drill pipe, was to be be welded to the body of the drill pipe. They were using the inertia welding process to increase productivity and lower costs of production.
So two separate pieces of pipe were butted up against each other and then one was spun at maybe 2,000 rpm’s (?). The machine applied friction pressure to the ends of the pipes during the rotation. After only a few seconds, the butt ends of both sections of pipe were glowing bright red hot from the friction and appeared to be welded together. I was amazed. And impressed. I will never forget it. Welding without a welder or a welding machine!
Then we were able to finally leave that place. And as miserable as it was, I am glad to have had that experience and witnessed that demonstration. I am still in awe of the engineering mind.
On a drilling rig, three joints of drill pipe are ‘made up’ (tightened) together into something called a ‘stand’. Each stand is 90-100’ in length. When drilling a well, a bit is placed on the bottom of the drill pipe and the hole is drilled. When almost all the drill pipe is in the drilled hole, another stand of drill pipe is ‘picked up’ and the connections are tightened to the one in the hole. And the drilling continues another 100’ deeper. Then repeat. This is the full extent of my knowledge on drill pipe.
It all sounds so simple. But I do not think it is. There seems to always be many complications. Like those we have experienced.
I often think back to that day, and rejoice that I have the option to not work at that place.
Here are a couple of links about the drilling process that I found to be informative for those of us with limited or no exposure to drilling.
Currently I am trying to learn more about the drilling mud. I found this aspect of drilling highly interesting. And very complicated.
In fact, the entire offshore drilling process is highly complicated and I have heard it mentioned, that next to space launches, it is the most challenging of engineering activities.
The OPEC 48th Meeting of the Joint Ministerial Monitoring Committee (JMMC) took place via videoconference on Monday, 03 April 2023.
The Committee reviewed the crude oil production data for the months of January and February 2023 and noted the overall conformity for participating OPEC and non-OPEC countries of the Declaration of Cooperation (DoC).
The Members of the JMMC reaffirmed their commitment to the DoC which extends to the end of 2023 as decided at the 33rd OPEC and non-OPEC Ministerial Meeting (ONOMM) on 5th of October 2022, and urged all participating countries to achieve full conformity and adhere to the compensation mechanism.
The Meeting noted the following voluntarily production adjustment announced on 2 April 2023 by Saudi Arabia (500 thousand b/d); Iraq (211 thousand b/d); United Arab Emirates (144 thousand b/d); Kuwait (128 thousand b/d); Kazakhstan (78 thousand b/d); Algeria (48 thousand b/d); Oman (40 thousand b/d); and Gabon (8 thousand b/d) starting May until the end of 2023. These will be in addition to the production adjustments decided at the 33rd OPEC and non-OPEC Ministerial Meeting. The above will be in addition to the announced voluntary adjustment by the Russian Federation of 500 thousand barrels per day until the end of 2023, which will be from the average production levels as assessed by the secondary sources for the month of February 2023.
Accordingly, this will bring the total additional voluntary production adjustments by the above-mentioned countries to 1.66 million b/d.
The Meeting noted that this is a precautionary measure aimed at supporting the stability of the oil market.
The Committee thanked the OPEC Secretariat for their contribution to the meeting.
The next meeting of the JMMC (49th) is scheduled for 4th of June 2023.
Mrs. Smith
I have been reading articles to try and get a feel for the Global Drill Pipe Market. Let me sum it all up by saying that the experts, those people that get paid to know the right answers, estimate that the global market for drill pipe will increase by 70% between now and 2031. By the way, North America is the largest regional market for Drill Pipe.
They are way over my head, as I am no expert, but the bottom line is there appears to be plenty of interest in drilling. How does any of this affect Gulfslope Energy?
Just saying that with this much interest in exploration and drilling activities, it is only a matter of time before an investment desire meets up with an opportunity waiting. And when this happens the support will be there for Tau 2.
Keep it turning to the right.
Mrs. Smith
Disclaimer duly noted. Cannot be too cautious.
There will be bids in this GOM lease sale, several from the big oil majors. But I am not expecting Gulfslope to make a show at this time.
Indications are the primary focus is on securing “funding for the purchase of production” and “drilling Tau 2”. Sounds like a full load for a small staff.
Oil prices are lower and more stable, which is a much better environment for successfully purchasing producing properties.
And those building fires and stoking the flames do need to be wary of the smoke, the heat, the cinders, and recognize there is always the danger of being caught in an inferno if the wind changes in direction and intensity.
But “professional arsonists” will certainly know that. No one’s head is buried that deep in the sand. I only hope they remember there is also a line in that sand. And that they know where it is.
Because even “great firefighters” may not be able get control of a wildfire. Sometimes those just need to burn themselves out.
So Joe, You have already suffered the fall,
Your legacy is now known to all.
Just please hurry and go,
We know all we need to know.
Someone Somewhere Still Needs You,
There is Nothing More to Do.
It Is Just Someone Somewhere Else,
Even if I say it Myself….
Mrs Smith
My favorite part of the discussion on H.R. 1 was when it was pointed out that the two most significant flaws of the Biden Administration Energy Policy are physics and math (Bruce Westerman, Chairman House Natural Resources Committee).
This aligns perfectly with my own conclusions. He must have also read the EIA report.
Mrs. Smith
Points of view of members of the House of Representatives on USA energy….
Link to video. Starts about 4 minutes in.
I am a very happy GSPE shareholder today. It is because I have already acquired all the GSPE shares I need. I may considered adding more shares at some point, because nothing ventured….
Taking progressives at their word, and accepting that they ‘might’ be accurate in their assessment of about 20% of vehicles sold in 2050 will be EVs.
Think about it some. So if EVs are so great, what is restricting the demand for them 27 years from now? I think progressives protest too much about the demise of gasoline and diesel powered vehicles. I am not in the market for an EV. And it appears I am not the only one.
Then you have the ‘leadership’ of GM proudly proclaiming that, by 2035, GM will only make and sell electric vehicles. If only 1 out of 5 vehicles sold in 2050 is electric, then I suppose GM management expects there will be no competition in that slice of the market in 2035.
Because if there is, how does GM propose to stay viable and avoid bankruptcy selling maybe 20% of EVs in a marketplace where only 20% (or fewer) of vehicles sold are electric?
Perhaps they can get another government bailout. Wait! I want to see the terms of that government bailout in 2008. Will Government Motors be given tax exemptions? Or allowed to dump union jobs, pay, and benefits? Did the Feds get any GM stock for the $50 billion in the bailout? Just asking, not saying. Something is missing from these calculations.
Regardless, today I will make the prediction that, by 2035, FEW of the current management at GM will still be employed there. Or else the company will be almost insolvent after undergoing layoffs and restructure.
Sell GM stock now and buy GSPE shares today. By 2035 you will be glad you did.
Mrs. Smith
Joe’s Information on Energy for the USA has stayed on my mind after spending all those hours trying to ascertain exactly what was being proposed in the latest EIA report.
I was particularly surprised by the report’s emphasis and reliance on those ‘anticipated future developments’, none of which currently exist.
I was shocked that our government, a major part of our government, the leadership of our government, is willing to go forward and bet the futures of All the Citizens in this Country on the “hope” that the “change” all works out.
The report did not address the risks of failure, what the failure would look like, the consequences of failure, or how to mitigate the failure. A wishful thinking case of out of sight, out of mind?
Typical of the unaccountable in the bubble, especially since they appear to not be concerned about any consequences, as they expect to be insulated from the turmoil of the aftermath.
What happens if the giant batteries that do not currently exist for storing the excess solar electricity generated are never perfected? Or they turn out to be Unaffordable? Unreliable? Unsafe? All of the above? I think I require more objective reassurances that we are on the best path.
Is there a Plan B? I would like to know the economics of it all and study the risk matrix. How about you? Interested?
Want a hint? Look at what is happening now in the energy failure of South Africa. There was a time this country was in parity with other prospering countries.
Then their leaders chose renewables for electricity rather than to update the aging coal fired generating plants. This appears to be a common denominator in the failures of many countries.
The USA should probably take a hard look at this since they want to follow that same model.
The voters too.
Looking at it as objectively as possible, I suspect the judgment of those in the ‘Joe’ administration is clouded to a great degree by their desire to quickly implement as much of their progressive agenda as possible. This should not be the top priority of governing…. Perhaps a good thing for progressives, but not a good thing for the country.
I would not be so uneasy if I had any confidence in their ‘crisis management’ skills. But there is no reason to believe the expertise for any of that is available to them.
Indeed, I suspect that when things heat up, the plan is for them to just resign, and head home.
That could be the best outcome for everyone.
Mrs. Smith
https://hotair.com/jazz-shaw/2023/03/25/the-african-power-grid-collapse-is-spreading-n539215
FYI only…. From the website IssuesInsights.com:
https://issuesinsights.com/2023/03/28/evs-are-the-yugo-of-the-21st-century/
‘EVs Are The Yugo Of The 21st Century’
Way back in the mid-1980s, communist Yugoslavia exported the Yugo, a compact car that sold for around $4,000. It was so poorly made that bumping into a pole at 5 mph could total it.
Fast forward to today, and a new class of cars has a similar problem. A minor accident can cause a total loss, even if the car’s been driven only a few miles. The only difference is that these cars aren’t cheap imports from some godforsaken socialist state. These are state-of-art electric vehicles that come with an average sticker price of $55,000.
Why are insurance companies totaling low-mileage EVs that have been in a fender bender?
For the same reason you could total a new Yugo when backing out of a parking spot. The cost of repair is exorbitant.
As Reuters reported recently, “For many electric vehicles, there is no way to repair or assess even slightly damaged battery packs after accidents,” which means the only viable option is to replace the battery, which represents about half the cost of the car.
A replacement battery for a $44,000 Tesla Model 3 can cost up to $20,000.
One expert told Reuters that Tesla’s Model Y has “zero repairability” because its battery is built into the structure of the car.
As a result, drivers are finding that even a minor accident ends up with their shiny new EVs being hauled away to the junkyard.
Reuters’ search of EV salvage sales in the U.S. and Europe found a large number of low-mileage EVs made by Tesla, Nissan, Hyundai, and others being scrapped.
“At Synetiq, the UK’s largest salvage company, head of operations Michael Hill said over the last 12 months the number of EVs in the isolation bay – where they must be checked to avoid fire risk – at the firm’s Doncaster yard has soared, from perhaps a dozen every three days to up to 20 per day,” Reuters reports.
Insuring an electric car is already 27% more expensive, on average, than a gasoline-powered one. If insurers keep totaling new EVs with minor damage, those rates will only go up.
This won’t be a problem just for EV owners. You can bet that the environmentalists pushing electric cars will soon start complaining that insurance companies are “discriminating” against EVs and demanding that they spread those costs around more widely – forcing owners of conventional cars to subsidize EVs.
EV advocates say not to worry. Car makers, they say, are designing batteries to be more modular and replaceable. They promise that repair costs will eventually come down, and all will be well.
Maybe so, but that’s why force-feeding this technology is so reckless.
In a normal market, carmakers would work out such kinks before mass producing a vehicle, much less converting their entire fleets over to a new and relatively untested technology. If they couldn’t resolve problems of affordability, reliability, and repairability to consumers’ satisfaction, automakers would scrap the effort and move onto something else.
But our elites think they know better. And they want new cars to be 100% electric within a decade. So, carmakers feel like they have little choice but to plow ahead.
Which brings up another way that today’s EVs are like the Yugos of yesteryear.
One auto critic said of the Yugo that it “had the distinct feeling of something assembled at gunpoint.”
That was probably literally true in the case of the Yugo. But it is essentially the situation with EVs today. Consumers aren’t banging on dealership doors demanding EVs. Ford reported last week that its e-car division is losing billions of dollars a year.
Car companies are pouring money into electric cars only because the government is holding a gun to their heads, saying build EVs or die.
Mrs. Smith
Put this in your calendar. Should be interesting and informative….
H.R.1 Energy Roundtable Discussion
STREAMING LIVE
Tuesday, March 28, 2023
11:15 Am ET
Link to Live Stream:
https://americafirstpolicy.com/latest/h.r.1-energy-roundtable-discussion
Mrs. Smith
I ran across something very interesting. It is called The Environmental Quality Index. Attached link for you. It is worth the read, even if you will not need to debate John Kerry. For the record, I totally agree with the conclusion that it is much better for the environment for oil and gas to be produced in countries with high standards (USA).
https://www.instituteforenergyresearch.org/wp-content/uploads/2023/02/IER-EQI-2023.pdf
This 2nd link is for those that like to keep a close eye on the travails of John Kerry and how he seeks to undermine you.
https://www.foxnews.com/politics/climate-czar-john-kerry-says-biden-impose-more-mandates-go-farther-inflation-reduction-act
Mrs. Smith
I do find it curious that some people professing to be all about the human condition, as one of the highest priorities, have no difficulty turning a blind eye if it supports their pursuit of power. Nothing tells a more true story than actions. Yes, the ‘words’ are to seek favor from certain groups. But the actions show the priority is putting the political ideology in power and keeping it there. Nothing is more important to them.
I think EVs are appropriate for use in high density urban environments. But they may not work as well for mainstream transportation. And I think the cost of ownership is a deal killer. You pay a premium price to purchase, then 7 years later, you junk it when the battery needs replacing. An expensive disposable car!
I have a great many concerns about solar power too. Near the top is just how cheap is solar? No, I am not talking about a solar panel made in China.
I refer to a solar energy electrical generation system providing ‘primary power’ to the population of the USA. What does that cost? Mind boggling I am certain. That much money may not exist. Printing more inflation for Joe debt?
We already know it is an intermittent power source, but exactly how inefficient and expensive will solar energy actually be? And since we will need solar energy 24/7/365 what are the challenges? Will it be reliable? Affordable? Safe? Is it really where we want to invest the wealth and well-being of all? Solar supporters, I promise an open mind, so convince me if you can.
Otherwise, I detect electricity rationing in our evenings in the future after the sun sets. How will the batteries in millions of EVs get charged? Looks as if we will not only need home battery chargers for the EVs, we will need home generators for the electricity as well. Who knew? Oh, yes. The benefits of cheap solar energy.
To the progressives, that money is only tax dollars. And those trillions can be replaced with more tax increases, right? Plan A I am sure.
Except you cannot tax earnings that do not exist after the economic collapse of the country. And billionaires will only relocate to another place where electricity is from nuclear power or coal. What irony. Want to see what happens to an economy without electricity? Check out what is happening in South Africa right now.
Sadly, there is little in this report that makes anything better for anyone in this country, except progressive politicians and their acolytes. Anything else besides natural gas, nuclear, or coal as primary sources are, at this time, suspect.
Wind and solar are fine as supplements to these, but I cringe when I hear of plans to make them primary. They have yet to prove we can trust in them and there is much at risk on a gamble.
We had better drill Tau 2. And every other prospect that can be identified. That is the best way to keep energy plentiful, prices affordable, and the power on.
Mrs. Smith
The new EIA Annual Energy Outlook was released March 16th (It took me this long to read it all).
And you can be confident this is the correct report, because it has been verified and double checked.
I struggle to find any value in this report. Reading the details reveals that this may only be a sales pitch for climate change from Joe’s perspective.
For example, even with the financial support of the huge Inflation Reduction Act (IRA), the 2050 market share of light-duty EVs as a percentage of sales, projects the increases to be around 6% (low oil price) and 22% (high oil price). This seems to indicate that those EVs may not be catching on as well as the progressive politicians had hoped, depending on the fuel price. So, is all the money being spent in support of them justified?
Typical of efforts to obscure inconvenient facts, some of this is not found in the text. It is in the charts. Pitiful Progressive Pie-in-the-sky Politics?
If one attended a meeting to secure funding for a project and offered predictions with ranges similar to those proposed in this report, that individual might encounter resistance. Then after also recommending to incur an outrageously large loan for funding the project, the individual might expect to be excused. But, then again, this is Joe’s real-world government, so maybe things are different for them.
The report indicates generating capacity for electricity will more than double by 2050. So to mostly rely on a 1000% increase in solar generating capacity between now and 2050, as is indicated in the graph, is simply concerning and implies that this will not be a good thing for any of us. If solar fails to deliver, we will not have enough power in some areas and we will consistently have rolling blackouts in some places. Perhaps in many places.
Solar energy will be challenging, inefficient, expensive, and intermittent. Not a winning combination in my estimation. This is mostly just a flawed and immature plan based on a political ideology rather than real-world mechanics, physics, knowledge, infrastructure, and economics.
Many of the assumptions regarding future energy outlooks are viewed through the prism of progressive hope and anticipated future developments, none of which are assured.
So what happens if they implement their grand plan and it all crumbles and fails? I cannot say. This was not addressed.
The Secretary of Energy and the EIA Staff obviously put forth a lot of effort to ‘sugar-coat’ the message.
To me this report just says ’This is what we hope happens. We could also possibly be wrong. But we are still willing to spend an enormous amount of money anyway’ (since it is really all about climate change, renewables, and not energy, then no problem). Another presentation for the naive and unaware.
Despite the hopes and desires of progressives, these projections do predict that oil and gas will still remain very relevant through 2050, with even minor increases in tolerance. In fact, this report states that, “The United States remains a net exporter of petroleum products and of natural gas through 2050…. ”.
I find myself in the position of looking forward to OPEC’s 2023 World Oil Outlook, because I expect it to be more informative.
In conclusion, I do not know where to begin. It is difficult to remain objective when dealing with the products of politicians. Especially progressive ones. Is glorifying a minor advancement in an industrial sector, which only represents 1% of U.S. energy usage, an example of misdirection?
So remember, this is their agenda, their charts, their assumptions, and their perspective. There is a persuasive argument to be made against every point being claimed. Relax. I am not going to address it here.
My final comment is ‘Drill Tau 2’. We are going to need it.
https://www.eia.gov/outlooks/aeo/
Mrs. Smith
Whoops! It must have been the blonde hair. But probably it was due to burning the candle at both ends, trying to post between business calls. I should know better. My apologies for posting an older report. Thank you for the head’s up spec. The actual report is due out March 29. And I will try again.
Mrs. Smith
Whether investing or trading, “Face Value” is often not a reliable strategy. This is likely why several of us comment on the GSPE board.
We offer our best opinions regarding how the things happening can affect the GSPE share price. And although there are moments of light-hearted humor, we do not often participate in the ‘drive by drivel’.
Instead, we spend much time on research attempting to stay informed. And we put effort towards communicating our findings and thoughts in a timely manner. Most days there is at least one post submitted for the scrutiny and comments of other readers.
This is done so readers stay abreast of new developments, and can perhaps better judge what best suits their own needs in these developing circumstances.
And this process helps all of us to have a better awareness of our perceptions, more confidence in our expectations, and trust in our own insights.
All points of view help, and without the involvement and contributions of the readers, this board and our comments would suffer. I believe the more perspectives considered, the better the message becomes.
Sometimes we are right. Sometimes we are not. But this is not the point. The point is that we have the discussion and exchange of ideas. Informed readers can then make up their own minds to discern what a post is, and what it is not.
Your participation makes a difference and adds value. Thank you all for joining in, whether through reading or posting. Please keep it up….
Mrs. Smith
I dislike that it appears as if I approve but, considering the lack of news for GSPE stock, I do understand the low trading volumes.
Also, the seeming strength in the share price indicates that remaining shareholders may be growing immune to the various invitations to sell their shares at a discount.
Images in the crystal ball are again both fuzzy and intermittent, but indeed, a majority of the shareholders appear quite willing to wait it out.
To me, the overall impression is that, until the value of the stock rises to the point that sales do not result in discouraging losses, many shareholders might choose to move forward with GSPE stock and hopes of getting a drilling or production deal together. My perspective exactly.
To them this is a more desirable outcome than making a trade for a meaningless pittance and accepting the loss of principal.
How high will the share price need to rise to turn this around? I cannot in good conscience make a prediction. There is just no way to know with any credible level of certainty.
In my own estimation, based on the value of the proprietary software, the GOM lease, etc., I will say the current share price is still undervalued with room to roam.
I have no clues as to where many shareholders are willing to start trading. Some, such as myself, may even intend to hold out for prices much higher than this. I am trying to come to grips with the presumption that what we are experiencing now may become the new normal until then.
Partner news will easily get GSPE shares over the ‘increased prices’ threshold. Traders really should rally behind this outcome.
Which, as far as I can tell, returns us to the idea of ‘patience and perseverance’. And thoughts of the barrels of black gold at the end.
It has also occurred to me that, with the majority of remaining shareholders on the sidelines, current trades could be trader vs trader….
I find this interesting and look forward to witnessing how that interaction works out. My best guess is these groups are tougher targets than an uninformed investor. So, probably not helping out on either volumes or prices.
No one ever said it would be easy. Or quick.
Mrs. Smith
After completely examining my motives for being a GSPE shareholder, I must admit that I have come to the realization that I am, in fact, a trader.
A support trader. Not one that follows the chart trends, but one that takes a longer term outlook on an investment. This is actually a vital and necessary requirement to being a successful shareholder of a drilling oriented company such as Gulfslope Energy.
The drilling process is often a long and convoluted path. This is true for even the largest of the integrated oil companies. They have many more drilling prospects than they have rigs under contract. Their drilling budgets are well defined and enforced.
So all their prospects are reviewed and prioritized. It is not uncommon for a prospect to take two or three years, or even longer, from concept to having a rig on location.
And this is with organizations having a budget readily available, with rigs on contract, and staffs with the mandate to execute the approved drilling plans.
I have to keep reminding myself of this whenever I start getting impatient. It occurred to me that maybe others could also use a reminder regarding the complicated activities Gulfslope is engaged in. I know this is not news for many of you, but for others, this could be the first drilling experience.
So my message to them is, do not despair. While things appear to be moving forward slowly for Gulfslope, this may not be unexpected for a start up driller, having to raise funds of a significant amount, in a financial market roiled by government interventions and ‘Joe’ economics.
The thing to keep focused on is that oil and gas production is a requirement for our society and for all those in the rest of the world as well. The economic and political outlooks and beliefs do not matter.
Unless they live in such an undeveloped state that they can heat their hut with a wood fire and walk everywhere they need to go, their existence requires fuel for transportation, fuel for manufacturing, fuel for electricity, fuel for food, fuel for heat, and so on.
So, regardless of the political will of some, the demand will not diminish any time soon. It is but a matter of time before our turn comes.
Fuel for thought.
Mrs. Smith
Yes. Confidence.
I am confident that the incoherent rhetoric postulating the end of ‘fossil fuels’ is being shown to only be propaganda for the manipulation of the gullible and uninformed.
I am confident that informed, sensible, and wise persons realize that oil and gas is vital for our continued well-being and will support and insist on it being supplied to the marketplace in the volumes required to sustain our civilization.
I am confident that EVs will be shown to be useful mostly as niche transportation for those wealthy persons in dense urban environments rather than for the masses.
I am confident that the economics of EV ownership will be shown to be non-competitive against the internal combustion engines and that they best represent those affluent individuals ability to absorb the additional costs of ownership.
I am confident that ‘climate change’ will be shown to be only the primary tool used for the control of our politics by progressives. And that ‘climate change’ will not be able to withstand the rigorous scrutiny necessary for manipulating future energy policy. It will come to represent the effluent politics of the opposition.
I am confident that Gulfslope will find the right deal to move the drilling vision, as well as the purchasing of existing production, forward.
I am confident that Gulfslope will be successful in the pursuit of oil accumulations in the shallow GOM and will thrive to the point of being a mainstream independent producer.
I am confident that my biggest regret as a Gulfslope shareholder will be my inability to find more shares to buy at these low-ball prices as the competition is great for the limited number available.
Yes, confidence. That is what enables me to stand firm with my convictions in the face of these not-so-insurmountable obstacles. And I do put my money where my mouth is. So I join with the other shareholders of that 1.27 billion shares.
Good word choice, spec. ‘Applause’.
Mrs. Smith
Much appreciated.
Live Long and Prosper. ‘V’
Remember to celebrate it each day, not just on March 26th.
Mrs. Smith
I am very thankful for the overall strength of the oil and gas industry. It is undeniable that they have managed to withstand the assault from the Joe administration. This is what companies with competent leadership can achieve and accomplish. And at the very least, I expect they will continue to hold firm.
No matter how hard Joe tries to sweep the oil and gas industry under the rug, sanity and reality will not allow it. To say nothing of the requirement presented by the demand for petroleum products.
FYI, his 2024 federal budget allocation to the BOEM for ‘Oil and Gas Development’ finally had a substantial increase of around 20% since 2021. I was not surprised to see Oil and Gas Development once again receiving more dollars than Renewables. Why? Because that is what reasonable and prudent citizens expect and demand. As bad as things might seem right now, try to envision what would be going on in your world if petroleum was suddenly unavailable. And Joe and his boys know it, in spite of the rhetoric they use.
I am hopeful bipartisan victories will continue to be achieved in both Houses of Congress. And remember, one way to apply pressure is through the ‘purse strings’. Spending, or more accurately reduced budgets, will be how to tame certain partisan activities that are in the way of the country moving forward.
The BOEM may hold as many as (3) GOM oil and gas lease sales in 2023. The (2) Biden stalled 2022 GOM lease sales, 259 and 261 from the 2017-2022 National Oil and Gas Leasing Program are now scheduled for the end of March and September of this year. Then there is the (1) scheduled 2023 GOM OCS lease sale, 262 from the 2023-2028 “Proposed” National Oil and Gas Lease Sale Program.
Ecstasy is the emotion I will exhibit if Gulfslope can participate in at least ‘one’ lease sale this year.
Mrs. Smith
Today (3/14/2023), House Majority Leader Steve Scalise (R-La.) introduced H.R. 1, the Lower Energy Costs Act, along with Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-Wash.), Natural Resources Committee Chair Bruce Westerman (R-Ark.), and Transportation and Infrastructure Committee Chair Sam Graves (R-Mo.) as original co-sponsors, to tackle the energy crisis caused by President Biden’s disastrous policies. The bill will be considered on the House Floor in the last week of March.
https://www.majorityleader.gov/uploadedfiles/hr_1_overview.pdf
The Lower Energy Costs Act restores American energy independence by:
* Increasing domestic energy production
* Reforming the permitting process for all industries
* Reversing anti-energy policies advanced by the Biden Administration
* Streamlining energy infrastructure and exports
* Boosting the production and processing of critical minerals
“For the last two years, President Biden and his extremist friends in Washington have waged a war on American energy, and hard-working families across the country are paying the price. Gas and utility costs have skyrocketed to record highs, with the average American paying over 40 percent more for gas at the pump since President Biden took office. Voters gave Republicans the majority in Congress to stop this radical anti-American energy agenda, and to take action that will lower prices, and House Republicans listened. I am proud to introduce today H.R. 1, the Lower Energy Costs Act, to cut red tape and increase energy production here at home so we can lower energy costs and stop our dependence on hostile foreign countries for our energy and minerals. With today’s introduction of the Lower Energy Costs Act, we will show the country how to end the war on American energy, become energy independent again, and lower costs for hard-working families who are struggling under the weight of President Biden’s radical agenda.
“I want to thank Speaker Kevin McCarthy and Chairs Cathy McMorris Rodgers, Bruce Westerman, and Sam Graves for joining me in bringing the Lower Energy Costs Act to the House Floor, and I look forward to its passage,” said Majority Leader Steve Scalise.
"Last Congress, House Republicans established our Energy, Climate, and Conservation Task Force to develop energy policies that meet the real needs of our constituents and our country. H.R. 1, The Lower Energy Costs Act, is a culmination of that promise. This bill counters President Biden’s attack on our domestic energy, and includes permitting reforms that will speed construction for major infrastructure projects across the country. I commend Majority Leader Steve Scalise, Chairs Cathy McMorris Rodgers, Bruce Westerman, and Sam Graves, as well as every member who spent the past 18 months dedicated to lowering energy costs for American consumers. Because of those efforts, we now have a bill that will grow our economy, strengthen our national security, and ensure clean, affordable, American energy can power the world,” said Speaker Kevin McCarthy.
“From the gas station to the grocery store, President Biden’s war on energy is making life unaffordable for the hardworking people of this country and forcing us to be dangerously reliant on supply chains controlled by the Chinese Communist Party. We must reverse course. H.R. 1 boosts energy production, lifts regulatory burdens for the construction of more energy infrastructure, cuts China out of our critical materials supply chains, and lowers costs across the board. All of this will ensure we build a better and more secure future in America,” said Energy and Commerce Committee Chairwoman Cathy McMorris Rodgers.
"Energy security is national security. Republicans are delivering on our promises to the American people by unleashing the full power of our energy and minerals, cutting permitting delays, creating jobs, growing our economy, and dealing a blow to China and Russia. At long last, H.R. 1 will give Americans the tools to tap into our resources and build stronger, more resilient communities than ever before. When families no longer have to worry about how they'll afford to fill up their gas tanks or turn on a light switch, they have the necessary breathing room to invest in our economy. I believe our best years as a country are still ahead, but we won't get there by taking a backseat and outsourcing an ever-growing demand for natural resources to our foreign adversaries. We are taking back control, putting America first and unlocking access to the cleanest, safest energy production the world has ever seen," said House Committee on Natural Resources Chairman Bruce Westerman.
“Addressing America’s ongoing energy crisis is one of the most important actions this Congress can take. The last thing we need is to be dependent on foreign energy, especially when we can produce and distribute energy here in the United States and maintain our environmental standards at the same time. This legislation will prevent federal water regulations from being hijacked and weaponized to block important energy projects, and I’m proud to have the Transportation and Infrastructure Committee’s work included as part of H.R. 1’s commonsense and comprehensive approach to solidifying our energy independence,” said Transportation and Infrastructure Committee Chairman Sam Graves.
WASHINGTON, March 14, 2023 — American Petroleum Institute (API) President and CEO Mike Sommers and North America’s Building Trades Unions (NABTU) President Sean McGarvey issued the following statement on the Biden administration’s decision to approve the Willow MDP Project:
"We commend the Biden administration for approving the Willow Project and for supporting the over 1,600 family-sustaining union jobs this project is expected to provide. The approval of critical energy infrastructure investments like Willow is essential to strengthening U.S. energy security and creating new economic opportunities across the country. Our organizations appreciate the support shown by the President to safeguard national energy security while securing middle class sustaining employment opportunities that will drive our country forward as we transition to a sustainable future derived from our vast energy resources."
The labor and oil and natural gas industries have united to be a healthy and thriving part of the 21st century of the American economy. Recognizing the importance of providing innovative and affordable access to energy is vital to the American People and the Nation. As part of the American tradition of building and growth in the industrial base, we understand the importance of the strong relationship between labor and the companies that will harvest the wealth of untapped oil and natural gas resources. The two million skilled workers of the American oil and gas industry are part of diverse economic communities across the country by protecting this crucial American resource.
Working together we can protect and promote job growth and be part of the economic future of America. Coming together we will address issues facing American workers in the oil and gas industry and throughout the economic base by enhancing economic development of the oil and natural gas industry, working together on public policy decisions affecting job retention and growth and educating the public on the importance of our economic impact on communities across the country.
The hey, you say. And not even close. Quite enough money, but could use more time. Since I am not a ‘trader’, I mostly do this just for the intellectual stimulation, and if I make a couple of bucks, that is okay too.
Do not misunderstand. I own enough shares that, if oil is discovered by Gulfslope, I will be very happy. But I am curious, what motivates you to be here?
From your statements on GSPE stock, it seems you have a very negative opinion of the stock, the company, the management, and the shareholders.
All of which begs the question, “why even bother?” After all, if “it is over, nothing here folks”, then why work so hard to get more involved in GSPE’s business?
This is the essence of the question on my mind, and although I expect evasion and not answers, I wanted to put that question in to the record.
Do you see any serious effort to purchase large volumes of GSPE stock at a discount before an anticipated run-up in price occurs?
If getting ‘back in’ at a low-ball discount is an objective, then I am loving that it must be done 100k shares (or fewer) at a time. Sweat equity! Work that ask off! Earn that prize! Talk about borked! And that should put a limit to it.
So no stress here. As the curtain is going ‘UP’ on Act 2 of this show, which is evidently just beginning, and not ending, I am wondering if the curtain is only following the stock price? Does that make sense, or suspense! Dud-de-Dum-Dum.
And make no mistake, some tactics may not gel with GSPE stock anyway. It appears to be protected by the Whales. There are 1.27 billion shares outstanding. And not many shares trade. The Whales have them locked up. How much damage can be done with 100k (or less) share trades? This is the reason many of us swim with the whales, making their hold even tighter.
The chaotic cause will not be helped out. Probably why they did it. Since whales control enough shares, the price is of minimal importance at this point in time, so they can ignore it. They are content to let raiders of the last ask play around some, while they focus on the end-game where the pay-out awaits.
It is difficult to threaten the Whales. Realize they feed on minnows at will. Besides, as long as the Whales stand firm, not much will happen. Perhaps not until the share price increases about 100% from where it is now. Then things can heat up some.
Allow me to propose taking an interest in ‘whale watching’. I have found it to be quite interesting. Others may too. Whales realize the money in this stock will come from drilling. All are welcome to take the ride. Or not. It is a choice. Does not matter to the outcome either way.
I will say this once more in case it was missed the last time. “It is simply a matter of scale. And our level of scale simply does not matter”. At least, not that much. A trade at .0078? Less than the price of a pinch of salt to a whale.
Could be hard to get a stake of an interestingly large volume at a discount. By paying a premium, and acting soon, it ‘might’ be possible to get it around .01 or so, and that can be a generous pay out down the road. A little patience and perseverance is all that is needed. And some cash.
Just a little analysis for our readers. I do not mind taking time for them. My pleasure.
Mrs. Smith
One should not lose sight of investments that have the potential to pay huge returns and dividends. Like oil and gas. Like Gulfslope Energy.
The interview on Cavuto reveals that ‘Woke’ investing was a big contributor to the failure of the bank.
The message was that, when investing with the focus on climate change, ESG, and renewable energy rather than shareholder value, then not only could returns on the investment not be realized, but the investment itself may be settled for pennies on the dollar when it all collapses.
And on top of that, it appears that some bank officers ‘cashed out’ by selling off their stock before the collapse. And if they get away with it, a sad state of affairs for the only losers, those shareholders.
The moral to this story is that if your funds are an investment, not a ‘contribution to a cause’, and management is not supporting the interest of the shareholders as it’s first priority, then ‘Get Out!’ while the getting is still good.
Politically motivated investing for purely ideological reasons risks a lower rate of return and in extreme cases, gross loss of principal. Perhaps that is why BlackRock, Vanguard, and State Street are all abandoning ESG investing. They have seen the handwriting.
Look at Russia and China. Even much of Europe and the UK. Is this the standard of living you find appealing? Three generation households with six to a room are common. No, I am not talking about the ‘fat cats’. But the typical productive worker trapped in such a society. No wonder the world beats a path to our door. Opportunity draws them here.
The progressive vision may be to bring the less fortunate up to parity with ‘equity’, but the consequence of this approach will actually be to bring everyone down to the level where no one has anything. That is, unless you are employed by the government and are the beneficiary of their gracious good will.
The non-productive can never reach parity with the productive without harming efficiency and reducing output. It is a skill issue and that is what must be addressed. Teach them to read and do basic math. To be on time at work. Pass a drug test. Then they have the opportunity for a better life.
Since there is no initiative to work for the same wages as paid to those who do not work, many workers will allow someone else to carry the load.
The result? No one does enough. Lower output. Poorer quality. Lower standard of living. It has never worked. Anywhere. Anytime.
The ‘equity’ of this action will be that no one has anything. Except ‘fat cats’ skimming off the top.
Please notice that, without the wealth produced by the most productive elements of our society, there would be nothing to redistribute. A case of the parasite killing the host? Exactly. And that is the problem with equity. How will it be paid for with no wealth? That is why it always fails.
So, Joe’s executive order to allow pension funds the option to purchase ESG investments has been blocked by both Houses of Congress, and absent his veto, we are spared for now.
But recognize the jeopardy these socialists in government can put all of us in by simply changing investment rules (ERISA) to allow willing bureaucrats to invest your money to further their political ambitions rather than your financial goals. This will not be the last act in this play.
Best to stay informed.
Mrs. Smith.
I was happy to see the share price showing strength. I was also pleased that the volume appears to be returning. If this trend continues, the momentum will have a positive effect on both the price and the volume.
For the record, I never believed there would be an analysis. Because the premise is not supported by the FACTS.
Continuing the search for useful ‘nuggets’ that will provide FACTS to guide our future expectations.
By the way, I do recall a LOI, but I cannot recollect the name of the privately held company. Since there is no public data it might be hard to track down. V-ger might be your best chance. Sorry I could not be of more help.
Cheerio.
Mrs. Smith
A quality post! Much appreciated. With my distraction behind me, I will refocus.
Mrs. Smith
You aim a lot of derogatory statements at GSPE stock. But, I never once have observed any coherent argument with facts or data to support your position and point of view.
Why is that? Is it because there is actually nothing of substance behind what is being said? If not up to the challenge, then just Discard the Discord and Chaos before regrouping. Perhaps this is the part of the show that is over.
So share that Petroleum Engineer expertise. Surely you have the clue, at least you try to sound like you do. So let us review the evidence. It is not really that hard. At least not for those that drill for a living. We will wait. Dude, do not turn out to be a dud.
This is just a request for clarification regarding the statements that you post. Please organize and present the arguments on GSPE stock that you wish for us to consider and take seriously, if there are any. So, once again, put up, or ‘not’. Which is it to be?
Take all the time you need. And like I already said, “we will wait”. But until you can justify those statements, I pronounce them to be of not much use and of limited interest. I will not heed them, nor will many others at this board.
This is a different game, and although you are not a whale, you are being watched.
Mrs. Smith
The GOM rig count fell by 1 rig this week, but is still up by 33% from this same time a year ago. So the Industry predictions regarding a significant uptick in GOM drilling for 2023 appear to be accurate and coming to fruition.
Other oil and gas Annual forecasts are scheduled for this month. I am particularly interested in the U.S. EIA’s 2023 Annual Energy Outlook and OPEC’s 2023 World Oil Outlook.
WTI is up slightly to $80.75/bbl. Due to tightness in supply and increasing demand from China, we should probably expect crude prices to rise even further.
More later.
Mrs. Smith
An old joke about Biden drilling for oil….
Joe is drilling in the ice for oil when he hears a voice call out from above,
“There is no oil under the ice.”
Joe looks up but doesn't see anyone. He asks - ‘can I at least drill and see for myself?’
The answer is in a louder tone,
“There is No Oil under the ice!”
Joe looks up and still can't see anyone. He thinks to himself - maybe I'm just hearing voices as he continues drilling.
The voice bellows louder than ever,
“There is No Oil under the ice!!!”
Joe begins to tremble as he asks - ‘who speaks to me?’
“I am the owner of the hockey rink.”
Joe should just let Gulfslope handle the drilling.
Mrs. Smith
Peeking out of the shadows for a few moments.
From my perspective, the ‘challenge’ to GSPE shareholders is in the volume, not the price. The company however may prefer a higher share price because it reduces the potential costs of securing partners and financing. On Friday, we got a taste of both. And it tasted good.
Low volumes (whether buys or sells), and the prices that accompany them, are mostly meaningless in the overall scale, scope, and scheme of a company with 1.27 billion shares outstanding. But they do still have negative impacts by deterring interest from new investors.
Low volumes are bad for everyone, and low prices are not favorable for creating investor interest either. This is undesirable because, without actively participating investors, traders are reduced to ‘chipping’ away at each other. Recognize that investors are more critical to the future of the stock than traders. You decide if there is a benefit to driving them away. Or to damaging the stock.
Since many low volume trades are sacrificial moves meant to lower the share price, they are destined to lose money. The preferred trade is one of ‘fewer shares = less loss’. This results in even less interest from new investors. Show of Hands, which of us engages in this to LOSE money on purpose? Anyone???
Is this a rational strategy for ethical traders to embrace? The math simply does not work for making MONEY if measuring profit by counting dollars. Is the point of doing this for dollars, or to count minor trading victories?
All shareholders have different reasons for owning this stock. But none of us bought it for the outstanding earnings and financial performance.
I personally own it due to the potential for an explosion in the share price when oil is discovered. It will positively shake things up…. G-!!!!!-A-!!!!!-I-!!!!!-N.
Meetings, discussions, and interested people? An absolute probability. I may be talking to the wrong crowd or situated in the wrong location, but I have personally heard no ‘buzz’. Yet. Among traders I wonder if our buzz is focused on the correct topics to pique or hold the interest of an investor?
And be assured, I share my own buzz. “More (shares) is Better!” and so forth. So do I get partial credit?
Also, management is full-time beating the bushes for a partner. Just as many appointments as they can set up and as often as they can. Trust in it.
These people will also have contacts with others. So the word gets out. Among them, there is likely to be some with money enough to take personal positions. Especially when it appears the stock price might be strengthening.
These partner discussions are happening. So, wait for an announcement. We should then see .02 with no sweat. Drilling begins at +.04. You know the rest….
Please note…. If these low volume, low demand gyrations become the prevalent trend with GSPE stock, they might eventually kill our ride due to lack of interest. It will be difficult to jump-start and get going again. So we will then need to sit and wait. Or walk….
Yes, ‘challenge’ is the right word.
In conclusion, just a fun little ‘ditty’ set to the theme song from an old TV western re-run with Clint Eastwood (see link):
Churning, Churning, Churning….. Keep those shares a-churning….. Stir it up! Shake it up! Spit it out! Skim it off! Slap that Ask!... And keep going, going, going… on, and on, and ‘oh-oh’….. Sorry.
But I do find the use of a whip interesting to get volumes moving. Perhaps we could refer to it as ‘whipping the ask’, lol.
Much appreciated. My sincere ‘Thank You’ for the support and well wishes. I will be back before you know it.
In my absence, remember the Mantra, Many More shares Matters Most!
Up, up and away. Leaving on my beautiful GSPE balloon.
Mrs. Smith
I may be MIA for a while. Not sure yet, but likely. So keep an eye out for el Mucho Lurko in case he has a question.
Spec will be fine without my presence. I will be back as soon as possible.
Until then,
Mrs. Smith
My Perception was that the Participant’s Performance was conducted Professionaly while Palavering about Popular energy Policies, and they did not disrespect the Platform. They seemed knowledgeable and I did not hear anything too objectionable. But it was +2 hours long.
One of the key points made is that between now and 2050 natural gas will stay a critical component of U.S. energy.
Super Yikes! Now we are cooking with GAS. The molecules of US energy independence. From GOM production too, I trust. So bring it on and drill Tau 2.
Mrs. Smith
A January 26th Roundtable on American Energy Security by the Energy and Commerce Subcommittee on Energy, Climate, & Grid Security.
A video of your government in action. Enlightening throughout.
‘On the road to a healthier offshore industry’, released January 23, 2023.
https://www.workboat.com/viewpoints/on-the-road-to-a-healthier-offshore-industry
Excerpt:
“Barclays’ 38th annual E&P Spending Survey calls for a healthy onshore spending increase with an upside bias, but importantly they see offshore spending increasing at twice 2022’s rate of increase (24% vs. 12%). This should be welcomed news for offshore contract drillers and their support providers, especially as producers are stepping up deepwater drilling in addition to more shallow-water work. Hunting elephant oil deposits in deepwater is becoming a higher priority for producers assessing long-term global oil industry supply/demand dynamics and their production profiles, especially as the prolific U.S. oil shale basins offer limited growth opportunities.”
Mrs.Smith
A quote by Secretary of Energy Jennifer Granholm on January 23, 2023.
“Yeah, so, first, with respect to LNG, we know that our liquefied natural gas exports have been a significant help to our allies.”
“And it’s an important — it’s very important to make sure that they have the means. We are fortunate in that we have an abundance, obviously, of natural gas in this country. Our prices are low. But during times of challenge, we want to help our allies as well.”
“We want to make sure it’s the cleanest natural gas, which is one of the reasons why the Inflation — excuse me — the Bipartisan Infrastructure Law really invested in carbon capture strategies and storage strategies.” (Inflation? Was that a Freudian slip?)
“So, that’s an ongoing issue and an ongoing conversation we’re having with industry…. Unquote.
Below is a link to an EIA article titled, ‘Pipeline projects announce to expand Permian natural gas capacity’.
https://www.eia.gov/todayinenergy/detail.php?id=53319#
Mrs. Smith