What is Direct Participation in Oil and Gas? by Swan Energy

Direct participation in oil and gas is not about buying stock options in gas and oil organizations or investing in general public businesses

Direct participation in the industry means that a trader or participant places their money into an endeavor which is going to get out there and drill a specific number of wells (these projects may include more than one wells) with the intent of these wells generating oil and/or gas that will then deliver income back to the investor.

This illustration by Swan Energy shows how direct participation in oil and gas works:

Direct Participation in Oil and Gas explained by Swan Energy

The income out of the manufacturing goes back to the enterprise and spread out to the participants proportionate to their Working Interest (minus taxes, charges, running cost, etc.).

Working interest is the term for primary liable portion of the ongoing expense associated with research, drilling and processing. Working interest owners furthermore completely engage in the earnings of any prosperous oil or gas wells.

An oil well at dawn

It is essential to take note that when anybody looks at taking part in a working interest endeavor they need to additionally be certain that the enterprise has a turnkey agreement so that they recognize what their charges is going to be up front.

These beforehand costs generally consist of research, drilling and assessment. Presently there may also be supplemental opportunities that will change from well project to well project. Fracking, pump jacks, and storage tanks are typical illustrations of typical additional expenses that are allotted to the participants. Make sure that you comprehend the financial requirement before getting engaged in a Joint Venture.

The notion of developing relationships or Joint Ventures to develop company connections has been all around for centuries. There are numerous distinct kinds of entities for direct participation in gas and oil undertakings; the most typical are Limited Liability Partnerships and Joint Ventures. A video presentation contrasting Limited Liability Partnerships and Joint Ventures in relation to direct participation in gas and oil undertakings may be found at Swan Energy’s web page.

If the endeavor is a Joint Venture (the entity that Swan Energy employs), there are two main functions that are important to understand. The very first role is the investor or participant. The participant puts up cash in return for Working Interest in the venture.

The next role is the managing venturer. The managing venturer runs the daily operations of the endeavor which might consist of, but is not limited to, developing the endeavor, managing the drilling and operations of each and every well, holding conference calls, dealing with any concerns that might come up, and controlling the financial aspect of the enterprise including obligations on oil and gas income back to the contributors based on profits which can be obtained from the production of each and every well.

In a Joint Venture, the participants have the command and make the judgements of Joint Venture. The Managing Venturer then implements these choices. In fact, the participants can substitute the Managing Venture with a simple majority vote

To illustrate, the contributors have the control to decide whether to cap a well or go to completion on a well. A lot of investors like this sort of oversight and control with their investments.

With any direct participation in oil and gas ventures comes risk. There’s constantly the chance that as soon as a well is drilled and tested that there’s no gas or oil found.

Swan Energy uses the Joint Venture structure to satisfy the targets of the participants in our programs to:

1. Supply cash distributions from operations
2. Provide increased tax benefits
3. Place control of the operations and management of the oil and gas program in the hands of the participants.

With oil extraction costs between $8 to $10 per barrel and each barrel selling north of $80, Swan Energy thinks that it doesn’t take an engineer to figure out that the oil market is positioned to see high profits that may be made at the original source for unbiased investors by participating in oil wells directly.

 

Swan Energy of Denver, Colorado Embraces Technological Advancements in Petroleum Production

From 2010-09-17

Swan Energy of Denver, Colorado, eyes technological breakthroughs in petroleum production.

Laser drilling, as a new technology, proves to be advantageous over traditional methods. It allows drilling on the surface area several times faster than conventional drilling rigs. Initial research and tests have proven laser drilling to be potentially highly effective that it is even dubbed as the possible answer to making uneconomic oil reservoirs commercially attractive.

From 2010-09-17

Since laser technology has the ability to penetrate rocks faster than usual techniques, it reduces the costs of operating drill rigs. A typical on-shore site costs an estimated $400,000 to drill, though the cost may increase depending on the terrain. Laser technology gives lower costs since the time to use a drill rig is lessened.

Swan Energy of Denver, Colorado, believes that the reason laser drilling may be faster than traditional options is the laser’s ability to cut through rock without physically contacting the surface. This saves operators the time needed to replace a mechanical part once it becomes worn out or broken by the constant grinding against rocks.

From 2010-09-17

Aside from faster digging, laser technology also creates a ceramic sheath to eradicate the expense of purchasing steel well casing. It is able to correctly predict the amount of oil through visual imaging systems and other downhole sensors.

Laser Drilling is still in its infancy research and development stages.  As this technology is being developed, Swan Energy looks forward to the positive impacts that it will have on the industry.

More information about Swan Energy may at viewed at www.swanenergyinc.com.

 

Swan Energy Advocates Green Power

From Swan Energy, Inc.

Nowadays, the slide towards global warming may be inevitable. But there are still ways to delay it. Swan Energy is such an advocate of this belief that it continues to develop fuel domestically to lower pollution levels and oil spills in the country.

From Swan Energy, Inc.

This oil and gas producer is committed to finding and developing petroleum-rich locations throughout the nation. By producing petroleum domestically, the firm believes that the country can make strides in meeting its demand for domestic oil and natural gas resources. Since fuel is created on-shore, there are lesser oil spills because the need to transport oil through the ocean is diminished.

From Swan Energy, Inc.

Swan Energy also  develops natural gas reserves which lets gas burn cleanly with minimal ash residue in the atmosphere. This clean oil and fuel slows down the ozone depletion and population levels in the country. Carbon dioxide emissions alone are lowered due to the nominal oil transport activities via the sea.

Swan is dedicated not only to producing oil locally, but also to creating natural, and clean oil alternatives for a better environment and country. More information about the company and its uncontaminated fuel are found at www.swanenergyinc.com.

 

Swan Energy, Inc. Helps Alleviate America’s Dependence on Foreign Oil

From Swan Energy, Inc.

Swan Energy, Inc., an independent oil and natural gas producer based in Denver, CO, is in the forefront of the search for domestic petroleum resource for the country. Specializing in the acquisition of petroleum-rich areas in the continental United States and their development into viable drilling fields, Swan Energy is gearing towards the country’s self reliance in energy resources.

The numbers clearly show it. According to the US Energy Information Administration (EIA), the US is the second biggest consumer of petroleum using up to 22.6 bbl/year per capita in 2008, but was only third in production at 8,514 103 bbl/d in the same year. Furthermore, the US EIA reports that the country imported an average of 12.220 103 bbl/day or 1,943 103m3/day in 2006 to address the large demand for petroleum.

Of the total US petroleum consumption, approximately 70% goes to transportation, the 30% to the industrial industry (23%), residential and commercial sector (5%), and electric power (2%). If the country can increase the domestic petroleum supply and depend less on foreign import, the price of gasoline will significantly decrease for the everyday consumer. Independence from foreign oil import also means more room for the government to pursue its own political directives.

From Swan Energy, Inc.

Swan Energy, Inc. is investing in the acquisition and development of domestic petroleum resources.

More information about Swan Energy and its services may be found at SwanEnergyInc.com.

From Swan Energy, Inc.

 

Swan Energy Looks into the Development of Laser Drilling and the Future of the Oil and Natural Gas Industry

As the country faces chronic challenges in energy production, Swan Energy looks into the future of the oil and natural gas industry for an innovative solution—laser drilling.

Laser oil well drilling is one of the most recent developments in the Oil and Energy industry—a development which Swan Energy, Inc. may utilize to advance its operations upon further research and development of the immerging technology. As an independent oil and natural gas companies in the US, Swan recognizes the critical need for the expansion of domestic oil and natural gas resources in the country, and is in the position to take advanced measures to address that need.

The company an advocate of the ongoing research for laser drilling, as major laboratories and collaborators are now studying the viability of utilizing high-power laser technology as a new way of drilling for oil and gas, or as an advanced upgrade for current drilling techniques and machinery. These studies are initially aimed at establishing a scientific basis for developing a laser drilling system and determine the level of interest from the industry in pursuing further research. Should laser drilling prove to be practicable, it could ultimately be the most significant change in drilling technology in the last century, with a high probability of replacing rotary drilling as the petroleum industry’s standard for reaching oil and gas deposits.

With the development of this cutting-edge technology, Swan Energy is an advocate of the  advancement of the oil industry and its preparation to address current economic issues and future industry challenges.

More information about Swan Energy may be found at SwanEnergyInc.com.

Swan Energy