The Curse Of Natural Resources

Canadian based corporation with management very experienced in the oil and gas industry. A number of countries have recently discovered and are developing oil and gas reserves. Conversely, if the customers are not doing well, likely the suppliers will also fare poorly. If the customers are doing well, likely the suppliers will also do well. Before you can move on to see what others are doing to fetch them so quickly and seamlessly. This in turns affects the Loan-to-Value ratio, interest rate payable and whether banks are willing to refinance when the loans fall due. You know whom to contact to get further in-depth information on properties of interest. But just to clarify, you will be — will you be seeking, will you be undertaking a marketing effort to sell the — to sell the PUDs associated with your working interest properties? Amoco also had working interests in major plants at Judy Creek and Kaybob. Without greenhouse gases, the heat would bounce back into space after hitting the outer atmosphere and the temperature would be 15.56 degrees Celsius (60 degrees Fahrenheit) colder, which is far too cold for organisms, plants and animals to survive. The recovering part is the upstream Exploration & Production sector with the rise in oil price, while the declining part is the ship/rig building sector, as discussed in Is A Recovery for Oil & Gas Shipbuilders Near?

In the eastern part of the Louisiana Austin Chalk Play, the Tuscaloosa Marine Shale (TMS) occurs below the Austin Chalk providing a “stacked” target opportunity. Six of these came in as gas discoveries, two as oil. See Is A Recovery for Oil & Gas Shipbuilders Near? Understanding the industry value chain will allow investors to know whether troubles will hit and whether a recovery is in progress. The first was Triyards, which I tried to take advantage of Ezra’s troubles and potential sale of a controlling stake in Triyards. This relationship is most evident in the Oil & Gas (O&G) industry, as troubles at upstream customers affect downstream suppliers. Hence, it is extremely important to know your customers well. Sometimes a newly drilled well which produces a substantial amount may suddenly stop producing and become depleted. Likewise, Triyards reported it had USD19.8M in cash as at end May 2017, of which USD16.8M was restricted cash.

A case in point is Ezion, which has USD93.5M in cash and cash equivalents as at end Jun 2017. However, USD89.7M of this was “earmarked by the banks for various facilities granted”. An example is Triyards, which is affected by the woes at Ezion, which is one of its major customers. See Know Your Customers Well! The industry is putting profits ahead of environmental awareness, as well as the health of the people in the areas surrounding power generating stations that use coal. The residential, commercial and power generating customers do not normally have that flexibility. There are 3 valuable lessons learnt from these episodes, namely, (1) know your customers well, (2) watch out for restricted cash, and (3) understand value-in-use. When the market is depressed, such as in the shipping and O&G industries, the market value and revenue that the asset can earn are depressed, affecting the VIU. For investors in FSL, value-in-use (VIU) would be a familiar concept, because it has an important implication on whether the trust could survive the shipping downturn. In addition, Ezion is also suspended and First Ship Lease Trust (FSL) looks like it is on the edge after failing to refinance its debts on schedule.

Unexpectedly, FSL did not manage to refinance its debts and had to seek a moratorium on debt repayment. If it can successfully liquidate all its ships (or until the debts are fully paid off), there is residual value for shareholders. Nevertheless, it has been selling ships to pay down the debts. In very windy days or at night, when power usage goes down, the meter will run backward and the power company will pay or credit you for the electricity. Another company that has restricted cash is Hyflux. In other words, it only had USD3.8M as usable cash. How can they secure enough gas for domestic use? However, the carrying value of the asset is dependent on (1) the price that the market is willing to pay for it, or (2) the cashflow (on a discounted basis) that the asset can bring over its economic lifespan. Investors love hotel business trusts that pay distributions regularly, but not hotel companies like GL and Stamford Land. An editorial from Chad Livengood featured in Crain’s Detroit Business News takes a closer look at the negative impacts a permanent shutdown of Line 5 could have on not only Michigan, but Canada and surrounding states as well.

The Association of Brokers that created the TSE formed in 1852, but no official records of the Association’s business practices have survived. “We fully understand the urgency to have a state budget in place. Most States in the US and Europe have also adopted 270mm as the optimum thickness of mineral wool to be used as loft insulation. The weight of the sediment compresses the mud into a fraction of its original thickness. It also lowered the value of a planned facility to export liquefied natural gas from Canada. It is up to the natural gas producer to decide the best method. Most of the finances that come from natural resources are used for carrying out corruption in the political arena. Some explorations may also make use of magnetometers and gravimeters to measure the earth’s gravity pull at the surface whereas geochemical prospecting involves the measuring of natural gases using high-tech instruments.