Genesis Energy acquires ownership of its percentage working interest through an assignment being filed by the operator with a Parish or County depending on the location of the well. Another way ownership is reported is through a division order being filed with the natural gas pipeline company listing the beneficial owners and their percentage ownership. This is done through subscription documentation and a certificate of ownership signed by one of the three company directors.
Domestic Oil and Natural Gas Prices Remain Firm
Supply for oil and natural gas has always remained stable and over the years tended to increase. Prices remain firm due to the ever-increasing demand to produce energy for domestic, industrial and commercial applications, not forgetting the high dependency of oil and the developing natural gas market for the operation of motor vehicles.
Outlook is Strong for Natural Gas
Natural gas consumption is broken into four sectors: residential, commercial, industrial and electric generation. The Energy Information Administration projects that over 50 percent of demand growth by 2015 will be due to electricity generation. Natural gas is in demand because it is the cleanest burning fossil fuel, helping to reduce air pollution.
Demand for Electric Power is Escalating
Natural gas represents almost a quarter of the United States fuel portfolio and is the fastest growing fossil fuel. A diverse fuel portfolio is important to maintain the long-term supply of energy.
Favourable Government Energy Policy
The outlook for natural gas is bright. The deregulation of portions of the industry have had positive impacts on price and supply of natural gas, and the Clean Air Act Amendments of 1990 have increased the demand for cleaner fuel sources in electric generation, industry, and transportation. Natural gas’ outstanding environmental record as well as its cost, availability, and efficiency makes it a superior fuel for the near and distant future.
Regular Quarterly Distribution of Income
Oil companies and natural gas companies purchase the commodity on a monthly basis. This system of payment is reflected right through to the investor on a quarterly basis providing a consistent cash flow.
Not a Blind Pool, Identified Projects
Properties are identified in each project, including production history, well data and reservoir evaluations. By processing this information and full geology reports, an assessment can be made on the commercial viability of the well.
The Demand for Energy...(0.9mb)
The outlook for natural gas is bright. The deregulation of portions of the industry have had positive impacts on price and supply of natural gas, and the Clean Air Act Amendments of 1990 have increased the demand for cleaner fuel sources in electric generation, industry, and transportation. Natural gas’ outstanding environmental record as well as its cost, availability, and efficiency makes it a superior fuel for the near and distant future.