Allied Energy Corp. (OTCMKTS: AGYP) assets grew in valuation as both WTI Crude and Brent Crude rose in value.
Global Oil Markets Whipsawed
The global oil markets benefits are whipsawed by the omicron variant. OPEC’s production is unchanged as the variant impacts the world’s largest oil consumer — China.
President Biden has made little impact by tapping the U.S. Strategic Petroleum Reserves (SPR). WTI and Brent settled higher last evening close to $80 per barrel again.
When oil prices rise, AGYP’s stock valuation goes higher. This is a company that pumps new oil and gas from older and once-commercial wells in Texas. So far, it has hit oil in five wells. It is now exploring for a sixth well. And it has identified plenty of more.
Oil Production/Demand In Uncharted Waters
The rise and fall of global oil prices is due in part to US oil inventories dropping 68 million barrels since the start of this year. Oil producers and experts cannot accurately predict oil demand. Omicron threw worldwide oil demand and production into uncharted waters.
In all of this, AGYP is an independent driller that thrives when oil prices rise. It sees many more oil and gas wells in Texas ready for exploration. Yesterday, AGYP stock rose 4.49% on this oil volatility.
Fossil Fuels Still Dominate Energy
Oil’s deep dependence globally still generates 80% of energy consumed. Conservationists may believe fossil fuels harm the environment, either way oil still dominates the world’s energy generation and isn’t going away anytime soon.
Investors should consider AGYP stock because energy is volatile.
Older, proven well sites are ripe for new oil.
Exxon/Mobil A Victory?
Conservationists declared a victory when they placed members on the Board of Exxon/Mobil. Yet, Exxon/Mobil is still budgeting for more fossil fuel exploration in 2022.
As long as energy prices and supply remain volatile and fossil fuels remain in demand, oil prices will rise. Analysts at Bank of America, Jeffries and JP Morgan predict global oil will reach $150 per barrel or even higher in 2022.
Exploring Well 1-H At Prometheus Site
AGYP is exploring for more oil at well 1-H on its Prometheus site. AGYP tweeted its progress, starting operations at this Well. Well 1-H once pumped 335 barrels a day plus 298,000 cubic feet of natural gas.
Last summer, an oil engineer estimated AGYP’s oil reserves at $32 million. But this assets under management (AUM) figure is calculated at prices per barrel at about half of today’s prices. As oil prices rise, these assets will only gain value.
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