Direct investment in oil & gas wells

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ochotona
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Direct investment in oil & gas wells

Post by ochotona » Sat Jun 11, 2022 11:15 am

I put 1% of my portfolio into EnergyFunders.com they directly invest in oil & gas wells.

But it has a 3-5 year lock up, it's for accredited investors only, and you sign away your money! No liquidity, you cannot get out. I know the people involved personally, so it was semi-easy for me here in Houston to make the investment, and I'm in the business for 36 years, but I'll only know at the very end what I got!
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Re: Direct investment in oil & gas wells

Post by joypog » Sat Jun 11, 2022 11:47 am

ochotona wrote:
Sat Jun 11, 2022 11:15 am
I put 1% of my portfolio into EnergyFunders.com they directly invest in oil & gas wells.

But it has a 3-5 year lock up, it's for accredited investors only, and you sign away your money! No liquidity, you cannot get out. I know the people involved personally, so it was semi-easy for me here in Houston to make the investment, and I'm in the business for 36 years, but I'll only know at the very end what I got!
Houston! Lived there for 9 years, loved the city but moved back west closer to family.
1/n weirdo. US-TSM, US-SCV, Intl-SCV, LTT, STT, GLD (+ a little in MF)
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Re: Direct investment in oil & gas wells

Post by boglerdude » Sat Jun 11, 2022 5:26 pm

Ocho whats your take on Peak Oil
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ochotona
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Re: Direct investment in oil & gas wells

Post by ochotona » Sat Jun 11, 2022 5:53 pm

boglerdude wrote:
Sat Jun 11, 2022 5:26 pm
Ocho whats your take on Peak Oil
Everyone well, field, petroleum province, nation sees a peak and decline in oil and gas production. Also the entire planet will. It's just physics and chemistry.

Higher price gets more exploration going, though, but as depletion continues the prices required increase, because lifting costs increase, and oil companies are not charities.

At some point, people won't pay for oil if cheaper substitutes are available. Or the economy will slow until demand is destroyed.

Same ideas apply to gold, silver, uranium, cobalt, lithium, nickel. We are way past peak coal right now.
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Re: Direct investment in oil & gas wells

Post by joypog » Sat Jun 11, 2022 5:59 pm

ochotona wrote:
Sat Jun 11, 2022 5:53 pm
Same ideas apply to gold, silver, uranium, cobalt, lithium, nickel. We are way past peak coal right now.
And peak domestic livestock labor...and human physical labor (for now).

I do not know with what weapons World War III will be fought, but World War IV will be fought with sticks and stones.
1/n weirdo. US-TSM, US-SCV, Intl-SCV, LTT, STT, GLD (+ a little in MF)
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ochotona
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Re: Direct investment in oil & gas wells

Post by ochotona » Sat Jun 11, 2022 6:08 pm

Publicly traded oil and gas firms are not drilling aggressively now because they have shale debts to pay off, investors want cash returned to them not burnt up in more unprofitable misadventures, and ESG is a factor. That's the entire premise behind Energy Funders - disintermediate the crappy management teams and put your capital right into working rigs. But it's risky (dry holes), your money is locked up, there is no secondary market for your shares, and there is no mark to market, it's opaque.

It's exactly like being a partner in a restaurant.
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Re: Direct investment in oil & gas wells

Post by boglerdude » Sat Jun 11, 2022 6:15 pm

How much of the shale boom was unprofitable and doomed to fail. And who funded that, Fed or stupid investors or both
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ochotona
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Re: Direct investment in oil & gas wells

Post by ochotona » Sat Jun 11, 2022 7:14 pm

boglerdude wrote:
Sat Jun 11, 2022 6:15 pm
How much of the shale boom was unprofitable and doomed to fail. And who funded that, Fed or stupid investors or both
The Fed put everyone on a chase for yield. The shale companies had a compelling story. They did produce a lot of oil, they just lost money with every barrel. Now they are making money but only after trashing their suppliers and laying off as many people as possible.
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