Mean Green

1-Hi Sonny, thanks for your time today! Could you tell our readers what your company does?

Pumpjac properties list oil and gas leases for sale and finds buyers for these properties. We are the exclusive sales agent for Majestic Management Corporation in Glasgow Kentucky.

2-How did you get into the business?

I am the owner of Entrivac Corp in Louisville Kentucky. We rebuild industrial vacuum pumps for refineries and gasoline terminals nationwide. A group of oil men in Texas, which I have known for years, ask me to perform due diligence for a oil property in Kentucky. I visited the oil field, made my report, and a few weeks later, they told me they were not interested, however; I was contacted by the selling agents of the Kentucky property. They liked my style and background and wanted me to consider selling oil and gas properties for them. That was one property and a year ago, and now we have listed nine properties nation wide totaling well over $1,000,000,000.

3-Are there any trends you are seeing that might not be apparent to our readers?

Well, producing properties with large reserves with good documentation are the best sellers now, however the best deals for the money are often the non-producing properties.

4-Where are the hottest markets for new oil and gas leases or production?

Actually everywhere. But of course the oil boom areas such west Kansas are especially so.

5-What are the valuation metrics to consider when evaluating an oil and gas lease?

Production, reserves, good documentation by the owner, and a clean operation with no open wells, spills, etc.

6-For level production, what are you seeing sellers get per barrel? $20K? $30K or more?

I do not get involved with that end of a sellers business. What they get for their oil does not interest me as far as selling the oil field.

7-Is this recent oil boom here to stay or just a speculative bubble?

Because the demand is here to stay and getting larger , because the world oil reserves are on a downward trend, (by most counts) the crude oil prices will be affected likewise.

8-How is your company different from others in the market?
We do not auction oil and gas properties, we do not operate regionally, and we do not specialize in any oil and gas field size ranges

9-Where are there still values in terms of buying production or leases? KY, IL etc?

I think everywhere when there is a good return on the buyers investment, say 2-3-4 years.

10-Is the market fairly efficient and liquid?

I think because of new technology in this industry, the market is more efficient than if ever has been

Thanks for your time today!

Oil prices have always been a concern. Recent events, along with increased awareness of the environment, have shown us the need for the creation of alternative means of energy.

Many different options have been proposed. Nuclear power is possible but comes with obvious safety concerns. Solar and wind look like viable options, but don’t seem to be getting large amounts of support. Another option is biofuel, which involves using the energy of organic materials to replace the function of fossil fuels. Ethanol is perhaps the most widely used of these, especially in Brazil and the United States, and is used most commonly as a blend with regular fuel.

Another kind of biofuel is biodiesel, which is made from either vegetable oils or animal oils. It’s actually possible with today’s technology to take the fat that comes from the grills at McDonalds and recycle this into usable fuel! As with ethanol, it can be used purely on its own but is commonly just a supplement to be added with other fuel. It’s currently the most common biofuel in Europe. The process of turning animal and vegetable oils into usable fuel is known as transesterification.

1.8% of the world’s transport fuel was biofuel in 2008. This figure seems small, but investment in these technologies is continually increasing, and will inevitably create new technological breakthroughs and a rise in popularity. Biofuels come in many different forms, and are commonly categorized into first, second and third generation.

First generation fuels are made from food crops such as sugar, starch and animal or oil fats. Grains can be made into bioethanol, and sunflower seeds into vegetable oil and then biodiesel. These are the most common first generation biofuels: Biodiesel, bioalcohols, vegetable oil, bioethers, solid biofuels, Syngas and biogas.

From non-food crops like waste, stalks of wheat and corn we get the second generation of biofuels. Since first generation biofuels are made from edible sources, the hunt is on to create more second-generation technology that can avoid a food shortage that may occur. They include biohydrogen, biomethanol, mixed alcohols and wood diesel.

Third-generation biofuels are the most complex, and come usually from algae, which produces a large amount of energy. While the advantages of third generation fuels would be great, since it’s virtually impossible for them to cause environmental damage, the technology has so far not been sufficiently developed to allow these biofuels to be produced commercially. It’s been put forth that 15,000 square miles of algae could supply all the petroleum fuel required by the United States.

These new technological developments show just how exciting the field of biofuel is, and the great benefits it can provide to the environment. The current environmental problems and massive fuel prices could perhaps be fixed forever with the further development of second and third generation fuels. Who knows what will be powering us fifty years from now?

The USDA recently came out with their estimates for corn ending stocks at .935 billion bushels which is 8% less than last year and an 11 year low. In fact the last time corn stockpiles were this low corn futures prices hit an all time high of over $5.00 per bushel. There is no guarantee that this same supply scenario will lead to all time high corn future prices again but massive amounts of new corn acreage will be necessary to keep up with the current demand and put a lid on rising corn futures prices.

Another consideration is the weakening US Dollar which makes American grains cheap to foreign buyers. There is more than a little talk by China and other Asian countries about reducing their amount of US Dollar holdings in favor of stronger currencies such as the Euro and the British Pound. This increased foreign buying power should lead to increased foreign demand and can also have an extremely bullish effect on corn futures prices over the near term.

Many analysts believe that crude oil futures prices must remain above $50 per barrel in order for ethanol production to remain profitable. Ethanol demand and usage is growing dramatically since the US government mandated its use instead of MTBE which was found to be poisonous to groundwater supplies and potentially harmful to humans. This mandate to use ethanol as a gasoline additive may also cut into the already tight corn supplies an help push corn futures prices higher.

There are two basic ways to speculate in the expectation of higher corn futures prices. Investors can purchase or go long corn futures contracts or purchase call options on corn futures. Many new investors choose purchasing call options on corn futures because of the finite risk aspect of purchasing options. Visit http://www.tkfutures.com/basics.htm to learn more about the mechanics of futures and options investments.

Before investing in corn futures or corn options investors must understand one basic truth. High profit potential investments such as corn futures and corn options carry with them a correspondingly high risk of loss potential. Investors in corn futures and options should only use risk capital because there is risk of loss in futures and options trading.

The whole world relies on coal, oil and natural gas ever since man learned how to drill the ground to utilize energy from fossil fuel. The hazards derived from fossil fuel are not a brand new knowledge at all. We all know that carbon dioxide emission of fossil fuels is the number one contributor of greenhouse gases that traps heat in the atmosphere, thus, causing global warming. Fossil fuels also cause air, water, and land pollution that promotes health risks. On top of it all, fossil fuels are non-renewable energy sources. It means that there will come a time when the world runs out of fossil fuels to utilize. If not, it will be too expensive to extract what is left of it.

Looming from the horizon are a list of renewable energy sources that offer clean and naturally replenished alternatives to fossil fuels. Energy that comes from the sun, wind, ground heat, water and biomass produce little, if not, no pollution at all. Here are some of the renewable energy sources that can save us from the hazards of fossil fuel.

Solar Energy – Man has since deemed the sun powerful. The evidence of which are the myths that we have across all cultures. Japan has the sun god, Amaterasu, Egypt has their own version with Ra. In the Bible, creation began with the phrase: “let there be light.” This only proves that our ancestors have known the sun as a source of energy in its purest form and yet it is only a few decades ago when the technology to harness solar power was developed. Today solar panels and photovoltaic cells are being used to extract sun’s heat to power generators that provide electricity to several households. Wind Energy – Another energy that has been used by our ancestors for centuries is wind power. Seafarers have been perusing the movements of the wind to sail their ships. Farmers grind grains and pump water through windmills. Wind turbine farms are now generating electricity for several cities in the United States. Hydroelectric Power – The force created by flowing water is arguably one of the most innovative among this list of renewable energy sources. It is also the easiest to replenish as the cycle of evaporation and precipitation goes on. Flowing water is used to power wheels that drive mechanical processes. The energy released shall be captured by turbines and generators and will then generate electricity for thousands of households. This is the exact technology behind the many dams around the world. Biomass Energy – Biomass is the energy derived from organic compounds that can be converted to electricity and fuel. Wood is the most common source of biomass energy. In the United States and Brazil, food crops are being tapped as good sources of biofuel. Ethanol, extracted from corn and sugarcane, is one good example. Methane gas harvested from biodegradable solid wastes coming from landfills is being converted to both biogas power plants and biofuels. Biogas proves to be the best alternative to fossil fuel such as oil and natural gas.

Also included in the list of renewable energy sources are hydrogen, geothermal energy and ocean energy. Among these three, geothermal energy is most utilized as electricity in several nations. Scientists are still doing further research to harness the power of hydrogen and ocean energy as both are expensive and difficult to obtain.