looks like we are re-hashing old subjects.
let me help you out a bit about the rail road.
take a peek at the last letter to share holders concerning rail transportation.
it states clearly
"Based on where we are today, we expect to be
selling our three products to three different purchasers that are well known oil and
products trading institutions: (i) the Diesel is being sold at our plant tailgate (ii) our
Naphtha is being sold FOB to a purchaser in the Permian Basin near our plant; we will
transport the Naphtha by truck to the customer and we have the arranged the truck
transport, (ii) our Residual is being sold FOB Port of Houston, which we will transport by
railroad on the Texas Pacifico-South Orient RR (which runs across our land) via either the
Union Pacific or the BNSF. We have the truck and railroad rate quotes and we are finalizing
the truck and rail agreements now."
So this means that at this point there will be no need for rail way access to the west. The products being shipped by rail will be going to Houston which is south and east.
But when I spoke to the guys at Pacifico they told me that they were getting ready to start the rebuild on the railroad. (although we don't need it right now)(notice how I said we).
never know what Jack will come up with in the future. (that clever son of a gun). Did you notice that he is sending the residuals to the Port of Houston. He is so Smart that he found someone to buy the residuals. For those who don't know what that is I went ahead and looked it up for ya. Accordidng to Bings dictionary it means (synonyms: remaining · leftover · unused · unconsumed · lingering · enduring)
Oh and did you notice that he said that he would not have to move that diesel, (remember I told you guys that there was a bad need for this in the Permian Basin, and someone so rudely stated that there was no need for it here and that it was unusable,(sure did hurt my feelings) and then Jack came to my rescue and found someone that would take that that unusable diesel that he is going to make, just so that I wouldn't look bad.)and that someone wanted it so bad that he would be willing to come and pick it up.
I will go a little farther and remind everyone that each piece of equipment out here in the oil patch runs off of this stuff that jack is going to make. AND this is starting with the drilling rigs, the trucks that haul supplies to it, the equipment that is on location of the site like light towers, water pumps, back hoes, fork lifts, circulating pumps just to name a few. now if I need to I can go on about all of those machines and vehicles that we need to get things done out here but we have other "old topics" that we need to discuss so lets move on.
But before we do I would like to remind everyone that there has been an announcement that there will be One hundred and ten thousand wells drilled out here in the next few years and that's only the preliminary projected number. And what does it take to drill those wells? one thing it takes is the stuff that Jack wants to make, Diesel. (gone need a lot of that aint we)
It gets worse for some. For those who says that the Saudis can stop this on a dime, news flash, Saudi Aramco is looking for office in the area. Probably not going to flood the market too soon I don't think.
