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Strategic American Oil Corp. (SGCA) Takes Advantage of New Oil Dynamic

In all of your life, do you ever remember a time when experts weren’t warning that the world is rapidly running out of oil? It was an easy call, since oil, like any non-renewable resource, is finite, while oil usage continues to grow with industrialization. The fact is that oil has yet to be economically replaced, and, government programs aside, money still tends to rule. The idea that we’ll wake up one day and all of the oil will be gone fails to consider that critical dynamic. Oil doesn’t run out, it just gets tougher and tougher to find and extract, making it more expensive.

Look at the historic price of oil, adjusted for inflation. For years, much of the world’s oil came from the U.S., and the price was largely influenced by controls on production or price. In the early 1970s the price exploded, fueled by the Arab oil embargo, but the 1980s saw the inflation adjusted price of oil fall back down to the $20-$30 per barrel range (in current dollars).

Then, around the turn of the millennium, the world began to change. The fall of communism in the 1990s, and the turn toward capitalism and free markets, together with the rise of the Internet and globalization, created a relentless upward push in industrialization, and the real price of oil began a climb never before experienced. Only during the oil embargo of the 70s has the real price of oil been so high. With oil now in the $90s, the entire petroleum industry is changing. Wells long abandoned are suddenly viewed as liquid gold mines, and even the most intense environmental pressures have failed to stem the growing global demand for fossil fuels, still seen as the cheapest source of energy, especially for developing countries.

Strategic American Oil has been one of the most successful small companies in taking advantage of this massive shift in oil sourcing and demand. Carefully avoiding the many risks involved in speculative exploration, the company has followed a steady path of targeting existing production and reserves in secure domestic locations, quickly locking up projects and opportunities in Texas, Louisiana, and Illinois. By being smart enough to recognize this new source of low-hanging fruit, Strategic has already been independently assessed as having net proved reserves of roughly $77 million (discounted at 10%), and continues to grow.

For additional information, visit StrategicAmericanOil.com

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