67 WALL STREET, New York - February 22, 2013 - The Wall Street Transcript has just published its Oil & Gas: Drilling Equipment and Services Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Capital Expenditures and Consolidation Activity - Frontier Exploration and Development - Shale Drilling Capital Expenditures - Oil Price Expectations - Shale Drilling Dynamics - Shale, Offshore and Deepwater Drilling - Oil and Gas Price Divergence - Offshore Deepwater Oil Discoveries
Companies include: GenOil Inc. (GNO.V) and many more.
In the following excerpt from the Oil & Gas: Drilling Equipment and Services Report, the CEO of GenOil Inc. (GNO.V) discusses company strategy and the outlook for this vital industry.
TWST: Would you start out with a brief historical sketch of the company and a picture of the things you're doing now?
Mr. Lifschultz: Tom Perkins of Kleiner Perkins, who developed Google, Compaq Computers, etc., was asked about how to write a business plan. He said he could not say, but could advise what he looked for on the last page: total market potential. The GenOil GHU Upgrader can unlock the value of 900 billion barrels of heavy oil in the world, and at $50 to $100 dollars per barrel over the next 30 years, that's $45 trillion to $90 trillion.
We're a technology company in the energy and water treatment field. We have a technology in what we call oil upgrading, the GHU Upgrader, which converts heavy, highly sulphurized oil into light, desulphurized oil; essentially into light sweet oil from heavy sour oil.
Now there are 900 billion barrels of heavy oil reserves in the world, and we can convert that heavy oil into light oil varies for $30 to $80 per barrel, depending on the quality of the oil. If you multiply 900 billion times an average of $50 a barrel, you're talking about unleashing $45 trillion worth of value.
The conversations in the media about peak oil essentially relate to the light oil reserves of 400 billion barrels, which produces 80 million barrels a day of light oil, which is used in making jet fuel, diesel and gasoline. That's something like 29 billion barrels of oil a year out of 400 billion. So in a sense, you're reaching peak oil there. Even with new discoveries and enhanced recoveries, that light oil base is not sufficient to fuel the world economy, especially with growing demand in Asia.
Goldman Sachs expects China to have about 600 million cars on the road by 2050, and the same for India. The total number of cars...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.