Colver Technologies: The 35% rally in oil prices has stalled as oversupply continues to defy rationalization for higher prices.
Colver Technologies says the stall in the hitherto strong rally in oil prices will last until such time as shale oil production in the US is significantly smaller than it stands currently.
Gus Stuyvesant, Chief Operating Officer at Colver Technologies, said, “There’s evidence that the Saudis have actually ramped up production to ensure that the market continues to exert downward pressure on prices and force US shale oil producers to shut down more rigs.”
Brent Light Sweet crude has traded as high as $63 in recent weeks as investors and speculators trimmed short positions in anticipation of a de facto bottoming in prices at the $43 a barrel level but, recent US stockpile data showed a far larger build in inventories than expected leading some to believe that US producers are calling the Saudis’ bluff and increasing their own production as well. The larger than expected build pushed prices below $60.
“I think we can expect to see this type of tit-for-tat dynamic going on until the most inefficient US rigs and wells are all shut down,” suggested Stuyvesant. He said that Colver Technologies had been taking advantage of the current squeeze in oil prices by increasing uptake of its modular GTL reactor technology which had enabled smaller, more pressurized producers to generate more cash flow by converting gas produced as a byproduct of their drilling activities into high-value, premium fuels like gasoline and aviation fuel.
“We’re the first to admit that this hasn’t been a good time for the oil industry but, for us, it’s been lucrative. Uptake continues to be buoyant and we’re looking at record revenues this year,” concluded Stuyvesant.
About Colver Technologies
Colver Technologies’ modular GTL systems revolve around the Fischer-Tropsch reactor, a conversion technology developed in the 1920s by Franz Fischer and Hans Tropsche in Germany in 1925. It facilitates the production of significantly cleaner-burning liquid fuels like diesel and jet fuel from natural gas that contains no sulfur. We are committed to doing our part to drive uptake of GTL fuels as global efforts to reduce emissions increase and have invested heavily to ensure the continuing development of this highly attractive alternative to conventional energy production.
Contact Colver Technologies:
Longzhimeng Asia-Pacific Center
22 Pangjiang Street
Dadong, Shenyang, Liaoning
China
contact@colvertech.com
http://www.colvertech.com
862422599383