takeaways from cop28…the global climate summit.
Today's big headline came out of Dubai and the global climate summit...
"COP28 And Fossil Fuels: A 'Transition Away' But No 'Phase-Out'" - Forbes.com.
The conference officially closed yesterday, delivering another "agreement of the nations" (nearly 200) to move away from fossil fuels in an effort to reduce emissions and the impact of their carbon footprint.
I'm Peter Snell, Managing Partner and CEO of PetroVybe, a private American oil and gas development company built on stewardship, partnership, and profit.
So why would the CEO of an Oil and Gas development company even touch this lightning rod of a topic...one that appears fundamentally opposed to what we do?
Simple.
This news actually represents opportunity...
...opportunity for the right Energy development players to increase profits, and opportunity for discerning investors who choose to partner with them and share in those profits.
We'll look at what that means for our wallets in just a moment.
First, let's deal with the aforementioned climate elephant in the room.
Yes, it's good to see people around the globe come together in an attempt to make the world a better place.
It's also good to be realistic that the world is deeply dependent on petroleum, natural gas, and coal.
It's not just cars and gasoline. It's all forms of commercial transportation too.
These fuels are also central to manufacturing and every link in every human supply chain, essential in healthcare, and they are also critical elements within the household items we use every day (furniture, clothing, literally almost everything in our homes).
And all those EVs that require electricity? The utility plants powering those vehicles require natural gas and coal for fuel to generate that electricity.
What about energy alternatives?
It's good to seek diversity in our energy sources for the benefit of the climate, and a whole host of other reasons.
But we have decades of incremental advancements in innovation that need to happen, and there are many innovation hurdles in developing alternative sources of energy.
Take for example the manufacturing, transportation, and capture of solar and wind energy...they all require gargantuan uses of petroleum products, not to mention they make a carbon footprint of their own.
They also face huge practical limitations in utilization of storage and production space, as well as in the conversion to usable energy.
No matter how any of us feel about the impact on the climate, this is the reality.
Does that mean we shouldn't innovate and seek breakthroughs?
No. We absolutely need to innovate breakthroughs. We just need to be honest about what it's actually going to take.
While we don't have time in this context to dig into the details of the agreement from the climate conference, the headlines generally show at least a hint of pragmatism entering the fold (progress over perfection).
And that brings us back to the opportunity for investors spurred on by this latest climate agreement.
There is profitable energy production already in play, that people on both sides of the climate issue agree serves as a bridge for the future in meeting energy demand:
NGLs (Natural Gas Liquids), a cleaner form of fuel to make energy.
As a private American oil and gas development company, PetroVybe is focused on the production of NGLs. And the profit forecast for this project, of which accredited investors can participate, is compelling. Here's a peek inside the numbers...
$10K/month. The MPD (Monthly Passive Distributions) to investor partners are projected to peak in excess of $10,000/month during peak production.
$326,000 over 5 years. This is the total passive distribution returns to investor partners over 5 years, a 3.26x multiple on a single unit investment.
Immediate tax savings. And for those of us who have a looming tax liability for 2023, we can use PetroVybe to pay ourselves instead of the IRS with a projected deduction* of 70% against ordinary income (even W2 and/or profit).
And PetroVybe's Geophysicist, a former Geology leader at ExxonMobil, has a 48-year track record of picking profitable well locations at a success rate of 75.2% against an industry peer average hovering below 40%.
There's still opportunity to participate in this project. But commitments are stacking up, especially with January 1 looming and a high demand for the tax deduction.
If you have $100k in liquidity (or can get there if you want), and see some like-minded thinking in this message, you can book a 30-minute Zoom (or call if you prefer) directly with me HERE to see if this is a fit.
Looking forward to meeting you!
Best,
Peter
