Oil, Gas, Lies and Corruption

I found an Asian oil expert – Hal Hemmerich, who previously built up a Middle Eastern branch of a company called High Arctic Energy Services [TSX:HWO-UN] in from zero to 250 people, doing oil & gas exploration & development work on assets all across Asia. He’s got 30 years experience in oil & gas around the globe and offered great perspective. Now he’s President of a Toronto Stock Exchange Venture-listed oil & gas company called Transeuro Energy [TSXv:TSU].

He commented that “we all know the most prolific producer on earth is Saudi Arabia but today they are unable to continue to supply the world with energy in the same way. In the old days, they would just punch drill hole after drill hole after drill hole. They would just mud up, with such great pressure down below, they would drive a hole down and produce. They started with conventional drilling because their resource was so strong. But as their resources have started to wane, they now need to re-work these wells.”

..The reality is that oil resources around the world were mismanaged for long-term benefits. And because of pride and political prestige, some of the biggest oil producers on the planet continue to deny this reality – oilfields are declining in production. Only now are we beginning to see glimpses of truth from the big OPEC countries that they are recognizing these issues and importing modern technology to extend the life of their reservoirs. But it is inevitable that truth will come out, and it’s companies like High Arctic and Transeuro who will benefit from this. Those who have the capital, technical ability and connections to access to these fields will profit handsomely in this new high tech era of oil and gas exploration.

Resource Investor