How oil works
Intro
www.howoilworks.com
Very few of the components come out of the fractional distillation column ready for market. Many of them must be chemically processed to make other fractions. For example, only 40% of distilled crude oil is gasoline; however, gasoline is one of the major products made by oil companies. Rather than continually distilling large quantities of crude oil, oil companies chemically process some other fractions from the distillation column to make gasoline; this processing increases the yield of gasoline from each barrel of crude oil.
In the next section, we'll look at how we chemically process one fraction into another.
How Oil Works
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The United States is the only country that allows its citizens the right to purchase oil and gas investment rights on publicly-owned State and Federal land equally with Exxon, Shell, and Chevron Texaco. {While Arabia has much greater reserves, can you imagine the average Saudi or Iraqi being given this right?) We offer our clients the opportunity to acquire exclusive drilling rights on government leases in active plays in the Rocky Mountain oil patch states of Wyoming and Colorado. We geologically evaluate the parcels offered in the periodic government auctions; attend the sales and bid on your behalf; and assist you in the maintenance and marketing of your lease on a due-diligence basis. We are ready to represent you at the upcoming Federal and State lease sales in Cheyenne and Denver.
Please inspect the enclosed list of lease parcel sizes, and select the parcel Size you prefer. Keep in mind that the larger the parcel, generally more wells can be drilled on the lease - thus, larger leases are more likely to sell to companies for development, and will yield a larger sale price with potential for larger continuing royalties when drilled and developed. And, royalties are the real long term income source in the oil and gas investment business. At the time of sale, it is standard procedure for you, the seller, to negotiate a permanent overriding percentage royalty - usually 3 to 4% - on the value of all oil and gas produced for the lifetime of the lease; this can roll into a nice stream of income continuing for many years.
We look forward to working with you to secure your piece of - quite possibly - the last great oil boom.