Electrolysis process is not new. In my early years in the piping business, I tried to bet a job at the Palo Alto accelerator, ( never got it) and the cooling water had a negative polarity, the electrical potential is very important in keeping the test element in the center of the core of the accelerator.
In the semiconductor manufacturing polarity is very important, so wash water has a negative polarity. This is also why all water piping is in inert material, Teflon, so as not to modify the polarity of the water.
My background was offshore drilling GOM and overseas, first with SEDCO and later ENSCO and Noble. H2S is an expensive bug to manage. The FED makes it very expensive to control and to dispose of the shavings environmentally friendly way.
Excelyte can mitigate H2S cheaply. Excelyte cannot be patented; also presence of Excelyte can no longer be detected behind 30 days. This is bad and good, good because once the shavings are treated they can be disposed of like any other dirt really. I believe, although I have not knowledge, that the Excelyte is water that once gone through the electrolysis process, the polarity of the water becomes negative. Not many organisms can survive negative polarity, naturally the degree of negative polarity is the company secrete! Negative polarity washing water is extensively used in the manufacture of electronic chips. It is also used in the Palo Alto accelerator cooling water. All these applications require the control of polarity. Negative water will attract unwanted particles and bugs and flush them out.
I strongly believe Excelyte has a bright future, but in the O&G business it takes time to acquire the bonified status of good product. Also and not least, the drilling business is on a downturn. None the less, 230 wells are now under treatment!
So far for Q4 the crack spread 3.2.1 is $9.64. The Q3 crack spread was $11.19. To be able to publish the K8 report, which the SEC must receive 10 days before the wanted Xdate, the crack spread data has to be taken no further than 30 days before the Xdate. ALDW has 20 days to prepare the report and have it approved by the BD.
So far Q4 crack spread is not too good!
Every one knows that the Prudhoe Bay oil production is a partnership between 3 Majors. BP is the operator. A percentage of the total production of quantified wells provide the US Royale Trust called BPT. So yes a USRT, as such, is not a partnership, just that the crude oil is provided by a partnership.
Now you have a possible answer. There is no reason why the existing pipeline, I believe to be 36 inch diameter, to be converted to a NG pipeline. The new 24 or smaller diameter pipeline could become the oil pipeline.
Gas pipeline are not govern by the same specification. The wall thickness does not have the same allowable stress and corrosion allowance. It has been a long while since I worked on pipeline. Has for the pump cavitation, it occurs behind the pump blades where the vacuum form. The pump RPM become an important factor.
According to my broker, The buyer of the equity will get the distribution even if the purchase is done with the 3 days prior Xdate, even though the purchase has not been process. The buy order satisfy the SEC rule.
You answered for me. The total volume of crude is flowing through the pipeline. BPT is a partnership which BP is the operator. Yes the pipeline must be full or the pump will cavitate. Usually 4 to 5 FPM is acceptable for a pipeline. Pressure drop is very important. Any way, I am repeating what is common knowledge.
I am of the opinion that there are 3 distingue life of a US Royal Trust (USRT).
1. The USRT begin at the IPO. Not all the wells are in operation. The production is therefore low. The future is optimistic because the number of wells will increase, therefore the production will generate more distribution.
2. The USRT has reached the planned number of wells and the production is study and the distribution is based on the crude oil index price.
3. The USRT production is starting to decline because the volume produced start to show a loss of pressure. The volume produced will slowly decline until the production can no longer cover the maintenance and management cost and will reached the end.
BPT is in the latter scenario. What makes BPT different is the Alaskan pipeline to Valdez. This as all pipelines need a minimum flow rate to operate. The volume of crude must fill the pipeline and the pressure upstream is what flows the crude to Valdez. The pipeline must stay full at all time and the crude velocity must stay at an optimum flow rate. The BPT production is slowly reaching this finality.
The cost of this ANS are:
A. The production cost.
B. The pipeline cost
C. The Jones act tankers to the West Coast
ANS delivered to the West Coast has to compete with Brent. The cost of a Jones act Tanker is $75000 per day, Average size 1.5MM barrel. The standard foreign flag vessel is $17500 for and equivalent tanker. Today 11/6/2016 the difference between ANS $35.53 (August 15) and Brent $46.96 is $11.43. Adding the pipeline cost and the Jones act tanker cost forces the BPT crude price at Prudhoe Bay to be that low $35.53. This does not leave much potential profit to BPT, which is shown in the price. As the crude throughput in the pipeline diminishes, without any other crude source the pipeline cost will becomes higher as per barrel bases. BPT will be and is starting to be under pressure to stay profitable.
It changes annually? No fooling! The NPV is what is left after all production is subtracted. Reservoir engineering is not engineering it is an art form. The size and content of the reservoir derives from the ultrasound generated. Than the size is further quantified by wildcat drilling. So the volume of the commercially recoverable crude is arguable, fact of life. The NPV is the volume left time the price of the index or indexes in play. It is the best guess available, it is not meaningless there are no other means to find out.
Alright, Xdate is the date of record, according to the SEC. Therefore you must be the owner on that date. To be the owner you must buy it 3 day before Xdate at least. The SEC rule is that it take 3 working days for a buy or sell to be consummated. You sell on Xdate, you will still be paid the distribution, because it take 3 days for it to be processed, you are still the legal owner of the units. Now this has to do with the payment of the distribution.On the day after Xdate the amount of the distribution is subtracted from the unit price, add or subtract to this the regular daily trading. If you wish to take the distribution you have to be long, you basically take cash for the distribution and lose the distribution amount as the lower price of the unit. My previous comment was not clear, sorry.
Your assumption are well taken and mostly right. Yes, the hedge of ALDW is its location. Yes new pipelines have started operations between Midland and Houston. All this is negative.
Historically speaking the GOM has never had much more than a 30 days storage capacity, if that. The GOM refineries have used tankers as the storage by controlling the docking dates, even if it met to have them circle up for days.
I believe the GOM storage capacity is limited. GOM refineries are working at 90% most of the time. We will be entering the turnaround times, and the limited storage will become saturated. The leverage ALDW has enjoyed will continue, but not the past level and more sporadically, depending on the GOM storage availability.
Excelyte has been around for sometimes. But the previous management was basically going after hospital bio cleaner. It did not know the O&G industry H2S problem. This new 200 MM shares was needed to set up the electrolysis plants that produce Excelyte which the new management know and go after full speed.
It will take another 6 month to a year to see IEVM take off. Do not forget that the O&G drilling is down, only the wells with no or little production pollutant are active. My guess is that wells with H2S are stacked until better days. So IEVM competition is the down turn, a nasty competition. None the less Excelyte has potential, I am long.
No it is a MLP, in the by laws ALDW pays as a distribution all cash in excess of all expenses, taxes and reserves. Got to read up on MLPs, for that matter US Royal Trust as well.
I was close,I keep track of the MLP really close, it is my best profitable MLP. Q4 will be more difficult to forecast? The crack spread is way down??
Right, you must be the owner of the unit until the end of Xdate. You sell before the closing you do not get paid. I would not trust the "after hour trading". I always sell a couple of days before the Xdate, just so I have takers. I rarely take the distribution.
There was 2 IEVM, the first did get Excelyte approved for hospital use by the FDA. Marketing disinfectant such as Excelyte to hospitals is possible, but means to compete with Chlorine based disinfectants. The old management did not research the real potential; it is only in May 2014 that the H2S application came about. Even then, none of the management of IEVM had any experience in the O&G industry. The new management does have O&G experience, and has moved aggressively on the H2S market. This is where the money is. This new management has been in place for 6 month there about. They already have shown good progress, and more is to come!
Now, I believe this OTC market is not aggressively managing the “Bid and Ask” legends. They keep the same “ask” all day or for several days. The “bid” is down at almost every opening. You would think that when the previous closed was higher than the opening; the following day opening should be higher. OTC market is slow or does not react like the DJI, COMPX and SPX. I guess IEVM must be $1 or more to move up to NASDAQ at least.
WHZ has had production problems from the start. The percentage of crude versus gas is rough. This has been there biggest handicap. The drilling program come into play as well. The kind of propan they use can keep the fracking open as long as the formation is not too soft. In this case the fracking shut off and little crude goes up. The geologic formation WHZ is located is not a prime location. managing production of crude, especially in fracking technology is not an easy task. WHZ is profitable with crude prices above $60.
This Crack Spread has nothing to do with Q3 distribution. The data for the K8 report has to be taken up to 30 days before the xdate. The K8 report has to be filed with the SEC 10 days before the stated xdate. So 3 weeks is left to get the quarter data, prepare the K8 report and have it approved by the BD. The average Crack Spread for Q3 was $12.87, it is down from the previous Q2. My guess the distribution will be $0.80/$0.90. still OK. overthought a 25% drop from Q2. If you are invested in the O&G that is OK these days.