The Tech Breakthrough Bringing Oil Into The 21st Century
FN Media Group Presents OilPrice.com News Commentary
LONDON, March 9, 2018 /PRNewswire/ --
A new oil extraction technology could unlock billions of barrels trapped in oil sands around the world with production costs as low as $23 per barrel-and without water or toxic trailing ponds. Included in today's commentary: Transocean Ltd. (NYSE:RIG), National Oilwell Varco, Inc. (NYSE: NOV), Whiting Petroleum Corporation (NYSE: WLL), Helmerich & Payne, Inc. (NYSE: HP), BHP Billiton Ltd. (NYSE: BHP)
And it's already launched in Utah, where the company is taking advantage of the state's massive heavy oil sands oil resource, which experts have pegged at an estimated 32 billion barrels of oil equivalent (boe).
This could be the Holy Grail of dry oil sands tech.
Existing oil sands extraction technologies use tons of water and leave behind toxic trailing ponds. Petroteq's system produces oil and leaves behind nothing but clean, dry sand that can be resold as fracking sand or construction sand or simply returned to Mother Nature.
Technology today is limited only by the imagination, and Petroteq is first and foremost an energy technology company with boundless imagination and foresight: While it's pumping out the world's first clean oil sands and getting ready to license its proprietary tech globally, it's also working on the first-ever energy blockchain consortium-and the heavy hitters are jumping on board.
Here are 5 reasons to keep a very close eye on Petroteq (PQE.V; PQEFF) right now:
#1 A $5.2-Billion Clean Oil Sands Opportunity
This is a $5.2-billion clean oil sands opportunity that will change the way we view this once-dirty resource…
In tests to date, Petroteq's patented technology extracts over 99 percent of all hydrocarbons in the sand, generates zero greenhouse gases and doesn't require high temperatures or pressures
The extracted crude oil is free of sand and solvents and then pumped out of the system into a storage tank.
The only other place that has oil sands tech is Canada, and it doesn't compete. It's designed for wet oil sands and Petroteq is after the dry oil sands bonanza.
#2 Market-Defying Production in the low $20s/per barrel
The Utah plant is just coming online, and it's ready to produce 1,000 bpd at a cost in the low $20s per barrel. Soon, they'll be getting ready to ramp up to 5,000 bpd.
But the upside here just keeps coming: As soon as it ramps up in Utah and shows the world how well its technology works in a commercial setting, it will start licensing the proprietary technology to other countries that are sitting on lots of dry oil sands.
So, Petroteq (PQE.V; PQEFF) is sitting on estimated reserves of 87 million barrels boe that is projected to be produced at $22-$25 per barrel and sold at world oil prices, currently $60/barrel.
That's some hefty math.
In fact, it's a $5.2-billion opportunity in the U.S. alone. That doesn't include the licensing opportunities (think giant oil sands potential in Canada, for instance).
#3 Global Licensing Could Disrupt Entire Oil Sands Market
Oil sands has long been sidelined because it's dirty. So, proprietary technology that can extract oil sands without leaving behind toxic trailing ponds is highly sought after.
This is far from a simple story about another small-cap oil producer. Petroteq's technology could generate millions in licensing fees around the world, and it is eyeing the opportunity to file patents in all countries with oil sands reserves.
This technology is aimed to be deployed to cleanly unlock oil resources representing hundreds of millions of barrels of oil around the world. Licensing is a revenue stream that can flow to Petroteq (PQE.V; PQEFF) with no associated capital expenditure.
Worldwide, the licensing opportunities are vast, with over 12 countries home to major oil sands deposits.
Fortunes can be built on licensing fees, and Petroteq could have a big advantage in this segment.
There's even more upside beyond global licensing of oil sands extraction technology: Petroteq's technology can be used for remediation, cleaning the tailing ponds created by traditional extraction methods for oil sands.
#4 It Gets Even Bigger with Blockchain
We're talking about a blockchain consortium in an industry that is badly in need of supply chain modernization and streamlining.
Blockchain technology is fueling a technology revolution of immense proportions, and blockchain has the potential to change almost every industry.
For investors, it's all about getting in front of this massive blockchain potential market set to see compound annual growth of 80 percent to 2022.
Smart money is moving in a virtual tsunami to blockchain, and PetroBLOQ has already earned the respect of major players like PEMEX, SOCAR, IBM and Deloitte.
Deloitte calls blockchain technology the "single source of truth" for the oil and gas industry. It's a reference to the power of blockchain to render every transaction in the world direct (no more middlemen), transparent, and faster than the speed of light.
It's efficiency at its purest because it has the power to:
- Transform fundamental methods of transaction processing
- Increase speed of execution and confirmation
- Save corporations and individuals significant time and money
- Secure payment and data transfers
- Increase transparency and record keeping for all parties to a transaction
- Mitigate counterparty risk for all sides
- Facilitate complex and international transactions
It's almost impossible to put a number on the dollar value in opportunities here because blockchain will change the way every single industry does business.
For energy, it's a mind-blowing transformation.
Deloitte sees Petroteq as an emerging player in the creation of a global consortium that will advance blockchain across the entire industry.
And Petroteq's PetroBLOQ gives new meaning to 'first-mover'. PetroBLOQ is developing the first blockchain-based platform exclusively for the oil and gas sector's supply chain needs-GLOBALLY.
That means its blockchain platform could end up involved in every single transaction in the oil and gas supply chain-upstream, midstream and downstream.
The biggest change to daily human life since the steam engine could turn out to be blockchain, and small-cap Petroteq aims to harness blockchain in a big way with a novel blockchain-based oil and gas supply chain management platform that could transform the industry.
#5 Major News Right Around the Corner?
Major heavy hitters are already on board with this small-cap's blockchain consortium. The first-ever clean oil sands production, this $65.5-million market-cap company could be poised for something far bigger than itself. And it's all proprietary and patented.
What do we expect in the very near future?
- Petroteq's (PQE.V; PQEFF) unleashing of the FIRST EVER comprehensive oil and gas blockchain supply chain platform in about 6 months
- Announcements of new blockchain consortium partners
- Licensing deals for its proprietary oil sands extraction tech
- Ramp-up of oil sands production in Utah
Deloitte is focused on the 'single truth' for the oil and gas industry, and PetroBLOQ could emerging as the 'single source' for 2 major changes in oil and gas.
At the same time, it's bulldozing forward with a clean oil sands opportunity in Utah that is ready to ramp up and should soon be ready to start global licensing…
Other oil companies bringing tech to the oil industry:
Transocean (NYSE:RIG) This offshore rig giant has been through the ringer and might have been left off everyone's radar while its aging rigs collected dust because producers weren't willing to foot the bill for expensive offshore operations when oil prices can't support new projects. But there's a new CEO in town, and while Transocean at first looked like it would be the first ship to sink, that's not the viewpoint now.
More specifically, Transocean is in talks with multiple customers for new floating contract opportunities this year and next, and management has said that the company may have a contract to reactivate its DDI rig for up to seven months offshore Australia.
National Oilwell Varco (NYSE:NOV): Its stock isn't as cheap as Transocean's, but it's still a good price, and this company will play a key role in the oil recovery when offshore rigs are reactivated-especially since it controls some 80 percent of all drilling-related equipment on rigs.
The past three years have seen NOV skydive downwards 60 percent from its peak thanks to the oil price collapse. It's again at multi-year lows.
Whiting Petroleum (NYSE:WLL): Whiting is big in the Bakken, but it's been hit harder than most, so it's a great time to buy. It took on a huge chunk of debt right when the oil price collapse happened, when it bought out rival Kodiak Oil and Gas for $6 billion. But since then it's been improving its balance sheet and cutting costs to manage low oil prices. It's work in that area has been impressive.
Helmerich & Payne (NYSE:HP) is a petroleum contract drilling company based in Tulsa. The company has been in operation since the 1920's so it has definitely seen oil prices rise and fall, remaining resilient the years. The company's FlexRigs have changed the face of shale drilling.
This one is interesting because the stocks been selling off because everyone thinks there will be a slowdown on market growth for land rigs, so this stock is cheap.
BHP Billiton Ltd. (NYSE:BHP): This giant not only mines metals, it also extracts oil and natural gas and has a diverse set of assets to that end in the Gulf of Mexico, Australia, Trinidad and Tobago. Beginning its operations in the 1800's, BHP is a well-known name in the resource industry. With headquarters based in London and Melbourne, BHP's global presence is will accounted for.
By. Meredith Taylor
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this release include that PETROTEQ will be able to produce oil as currently scheduled, at the rates of production announced and at the targeted low prices from its Utah property; that PETROTEQ will successfully develop a blockchain supply chain solution for the oil industry; that it will have customers and contracts for its supply chain technology; that oil will be as much in demand in future as currently expected; that PETROTEQ's technology is protected by patents and that it doesn't infringe on intellectual property rights of others; that PETROTEQ will find licensees for its technology and that it can patent its technology in many countries; that PETROTEQ's technology will work as well as expected; that blockchain technology will help PETROTEQ create a supply chain management system which can handle all transactions; and that PETROTEQ will be able to carry out its business plans. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that the Company's patents and other technology protection are not valid, patents may not be granted in countries where PETROTEQ wants to license its technology; production of oil may not be cost effective as expected, technology development costs may be much higher than expected, there may be construction delays and cost overruns at the production plants, PETROTEQ may not raise sufficient funds to carry out its plans, changing costs for extraction and processing; technological results based on current data that may change with more detailed information or testing; blockchain technology may not be developed to be as useful as expected and PETROTEQ may not achieve its business plans; competitors may offer better technology; and despite the current expected viability of its projects, that the oil cannot be economically produced with its technology. Currently, PETROTEQ has no revenues.
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