How to drill for Oil and Gas. - by Ameratex
Since discovering new sources of oil and gas is part of the nature of the business for the future,
they can incur expenses that seem large when they are looking for new sources and initial
capital requirements to develop the oil-gas investments that they locate.
On average, propane and heating oil prices have fallen in New England and Atlantic Canada by
about 10% since January 1st, 2012. The primary driver of heating oil and propane prices is the
price of crude oil, which has been falling since January 1st, 2012. Extreme weather, seasonal
demand, supply disruptions and speculation can also affect short-term propane and heating oil
prices. Therefore, to get an idea of where heating fuel prices could go, you have to understand
where crude oil prices could go.
Historically, in the past, over a period of several decades (and beyond), there has almost always
been a sizable number of what could be called "professional middlemen" who operated in the oil
and other commodity "secondary market" trading industries who are primarily but genuinely
driven by the belief or inner conviction that working as an intermediary in the industry is a
reasonable path to honest living which, if not leading one to an instant wealth, then at least to a
reasonable means of livelihood and steady economic progress and well-being.
The mutual funds that invest in the energy sector typically invest in large and independent oil
and gas companies. They also invest in drilling, which can be more speculative in nature, but
give a larger return if oil or gas is discovered.
Crude prices have primarily dropped due to concerns over the economic growth rates of the
United States, China and Europe. Slower economic growth leads to lower demand for oil, and
therefore lower prices.
There are several ways that you can make investments with oil and gas, through company stock
purchase, mutual funds that invest in the energy sector or commodities trading. You need to do
research on when is a good time to buy and sell oil and gas investments. Right now, prices are
down, so we are nearing the bottom, because of the state of the economy. As the economy
comes back, oil and gas investments will go up in value.
These events will likely lead to lower 2012 crude oil prices:
Lower predictions for the global economic growth and recovery, and therefore lower oil demand;
No resolution to the European debt crisis, and therefore a belief that Europe's economies will
continue to suffer;
Conflicts in Africa and the Middle East get resolved in 2012 and oil supply increases (e.g.
Yemen, Syria, Sudan and Iran).
These events will most likely lead to higher 2012 crude oil prices:
Decrease in oil supply from African and Middle Eastern countries due to conflict or economic
sanctions (e.g. Yemen, Syria, Sudan and Iran);
Ameratex Energy Inc Forecasts for global economic growth improve, particularly in the United
States, China, or Europe;
The European debt crisis is resolved in 2012 and Europe's economies improve.
If it's important for you to forecast your budget for winter energy bills, then you should consider
a Guaranteed Price Protection Plan if you live in NH, Maine or VT, or a Cap Pricing Program if
you live in NB, NS, NF or PEI. With these options, you'll be able to budget for the upcoming
heating season. If you would prefer to pay a market price or are absolutely convinced that
heating oil or propane prices will fall from here, then you can choose a variable pricing option.