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A Closer Look At A Royalty Trust(NRT)

|Includes:North European Oil Royalty Trust (NRT)

In thinking of the trusts I was interested in for income purposes per se, I decided to do a little research, and the experience has already been illuminating.

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I started with NRT. For whatever reason I kind of like Scandinavia. I'm a fan of Seadrill for example, and I just tend to think that some of the investment/management mentalities are at times ok up there, with the almost free higher education, and with the like of the local massive sovereign wealth funds perhaps on hand to lend advice, I am ultimately quite comfortable investing in similar pools of capital(companies) with said sovereign wealth funds. I also think they have decent management(Norwegian SW Fund) kind of like how Calpers used to have that sort of "star" appeal going on.

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Either way, naturally I presumed that a "Northern European Oil Trust" was somehow related to these really "northern" oil fields somehow. I guess the state, has a lot to do with that sort of thing in Scandinavia, but needless to say, I just presumed this was somehow connected to those fields etc.

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Turns out, by "Northern European" they mean "northern continental European"; for this trust in particular is invested in, not oil really, but "oil gas" I guess one could say, and the sulfur that can be extracted from it aswell. So to sum up; this would perhaps be more aptly named "The Lower Saxony, etc. Gas Reserve Fund". Owned by Shell and Exxon and some subsidiaries etc.

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Further, its reserves are currently going down, I guess as reserves tend to do. There still seems to be a few good years left in it though; if one goes to page 6 in the following document one can see for one's self, since it doesnt seem to be paste friendly; http://www.neort.com/PDF/2012-Annual-Report.pdf .

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Graciously however, this has also taught me some other useful pieces of information for example, I had no idea of the existence of the massive "Zechstein Formation" which seems to be a sort of basin per se that pretty much encompasses the northern portion of Continental Europe, and a little extra;

Source;

http://www.geocaching.com/seek/cache_details.aspx?guid=560503cc-098c-4bbd-bf59-1b1af837877d

So I guess that always good to know.

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Perhaps in this vain of thought its also worth mentioning that as another interesting Jeopardy-esque factoid; European Bison are called Wisent, or something of the like, and they are a little smaller or thinner per se, than their North American counterparts. Of Course, however, North America was home to some interesting Megafauna back in the day, always kind of interesting to think about, like the "Giant Sloth" for example, that could sit and eat out of a tree. I hope one day they clone them and populate a "Jurassic Park" style game-park with their ilk, for surely no one would have much to worry about, with a few hundred giant sloths slurping down leaves from tree tops. Anyway; I guess there's some truths that belay NRT, I hope they've been helpful for others aswell.

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Giant Sloth;("fantastic" scale)

Source; http://www.wetanz.com/adam-anderson/

(click to enlarge)Click to enlarge

Stocks: NRT