Allied Energy Corp. (OTCMKTS PINK: AGYP) is well positioned as energy is forecast to be in short supply and prices remain at three year highs. Last night, WTI Crude settled higher again at $76.08 and Brent at $80.18. Pricing is only part of the story. Forecasts are beginning to see oil at $100 — not just $90 — and shortages for the winter season in Europe and the U.S. making any oil from anywhere is treasured. Fossil fuels may be unpopular now, but never needed more as we enter winter.
Oil, gas and coal — fossil fuels all — are suffering the same fate: short, costly and unpopular with conservationists. Allied Energy Corp. (OTCMKTS PINK: AGYP) and other companies could not have foreseen this scenario. However, AGYP is extremely well positioned to sell its oil from its leased site wells in Texas. AGYP closed last evening at $0.3149, up 3.0933% in light volume of 147,105
The rising prices of oil is important in all this, but only a segment of a dangerous scenario. The reality of the impending situation is a scarcity of the commodity into the prime demand season. AGYP will sell oil at a higher, profitable price. The importance is that AGYP will provide oil/fossil fuels at a time when it is sorely needed to meet demand. Oil at $100 in the near future may be seen as a conservative estimate. AGYP is seen as a top oil sector performer.
AGYP solidified its positioning when it announced it began producing oil and began production at its Green Lease Site last week. It is near production in wells at its Annie Gilmer site, both in Texas. AGYP tweets documented the progress. A longer term view of AGYP’s prospects remains upbeat.
OPEC is also a factor. The Biden Administration believed it would succeed at convincing OPEC member states — including Saudi Arabia — to produce oil. It did not happen. The U.S. has already tapped its own strategic oil reserves. It can’t continue. In Europe, oil prices have now hit a 13-year high and utilities are beginning to fire up more coal plants due to sky-high natural gas prices and low supplies. Carbon credit goals be darned, Europe is seeking more coal and oil now as natural gas prices soar. In fact, Europeans are beginning to blame carbon taxes for Europe’s energy crisis.
Higher prices and shortages in global energy play to AGYP’s favor. Russia refuses to ship more natural gas, resulting in a 10% spike in European prices, while OPEC also rejects drilling for more oil. AGYP may be a small company, but it can play a role and help. As larger investors see oil as a smart investment, AGYP is sitting high and awaiting more production.
AGYP’s oil from its Green Lease Site and Annie Gilmer Site are welcome within the United States in the face of trending energy news. Natural gas is now trading at its highest levels since 2014 and are up 121% YTD, according to an article on oilprice.com
Shorts were already scrambling to cover AGYP positions last week.Perhaps seeing the events unfolding, last Friday ‘shorts’ accounted for 49.60% of total AGYP volume. The writing is on the wall. A short squeeze may already be developing.
A new report by the company details its progress on the wells at the Green Lease Site: Well M-1 and Well X-3. plus Annie Gilmer Site wells. George Montieth, CEO, said, “Allied is now on the cusp of becoming a producing oil company.