Home Economy RP Capital Funds Enjoys a Well of Support in Michigan

RP Capital Funds Enjoys a Well of Support in Michigan

734
31
RP Capital Funds
RP Capital Funds taps into Michigan's vast resources of oil and natural gas

Michigan is famous for many things, but oil is not one of them. The state is probably best known for the Detroit automobile manufacturing plants which enjoyed their heyday until the recession hit. The state also enjoys having more shoreline than any other US state, other than Alaska, with over 11,000 inland lakes and an estimated 36,000 miles of streams. However, Michigan is about to reveal a commodity so valuable that it has the potential to change the way the United States sources its energy. It is now increasingly evident that oil wealth is not exclusively available to those in cowboy country in Texas, or the sheiks of the Middle East.

A Shift in US Foreign Policy 

 

RP Capital Funds taps into Michigan's vast resources of oil and natural gas
RP Capital Funds taps into Michigan’s vast resources of oil and natural gas

The US remains the world’s largest consumer of oil, which is primarily imported from the Middle East and Latin America. There has been a growing move to make America more energy independent, by tapping into the country’s vast natural resources of oil and natural gas. The theory is that by safely drilling for oil and natural gas at home, America will be able to lessen its reliance on Middle East oil. This means that the US will soon be able to enjoy greater price stability, job growth, and more self-sufficiency in catering to its own energy needs. By obviating the geopolitical uncertainty that racks the Brent Crude Oil markets, the US may well be able to stabilize prices for its most treasured asset – liquid gold. 

Michigan Oil Waiting to be Tapped 

Leading from the front is RP Capital Funds based in Michigan. The company has fostered long-standing relationships with Michigan families, spanning several generations. It is against this backdrop of having built strong ties to the community that RP Capital Funds enjoys land lease participation in oil and gas drilling prospects. Presently, Michigan is ranked #1 in the US for natural gas storage. The state also enjoys a relatively high ranking for gas production (#11 in the US) and oil production (#17 in the US). The US Geological Survey pegged the number of oil barrels recoverable in Michigan at 990 million. 

Major US Energy Sources 

According to the EIA, US energy consumption includes: oil, nuclear energy, coal, renewable energy and natural gas. Oil is used for 92% of the energy required for the US transportation industry, but it is only used in 1% of electric power generation. A single barrel of oil equates to 42 gallons. The total energy consumption last year was 97.5 quadrillion Btus with each quad accounting for 172 million barrels of oil. These figures are enormous, so it’s easy to understand why US companies like RP Capital Funds are increasingly looking to domestic sources of oil and natural gas to satisfy American demand. According to multiple official reports, the US may be able to wean itself off Middle East oil by as early as 2035. This is largely thanks to massive discoveries of oil in shale-rock, deep within the crust. 

Crunching the Numbers

 

Brent Crude is expected to trade at $105 per barrel in 2015, while West Texas Intermediate (WTI) is expected to fetch $96.08 per barrel in the upcoming year. Standard gasoline prices in the US averaged $3.61 in July, down $0.08 from June. This decline is expected to continue throughout the year, with an average of $3.50 per gallon forecast. For 2015, the average price is expected to drop to $3.46 per gallon. The world’s top 5 oil producers (2012 figures: thousands per day) include the following countries:

 

gasoline prices
Standard gasoline prices in the US averaged down
  1. Saudi Arabia – 11,726
  2. USA – 11,109
  3. Russia – 10,397
  4. China – 4,372
  5. Canada – 3,856


Provided safe drilling practices are put in place and the EPA is satisfied the only hindrance to widespread tapping of US natural resources lies in political opposition to it. The US certainly has the capacity to provide for its own energy needs and this will have a profound impact on its foreign policy approach moving forward. 

 
SHARE
Previous articleRussia Instigates a Food Fight with Europe and the West
Next articleGermany is Deeply Concerned about ECB Policies
William R. Feins , freelance journalist from London, UK; he received his B.A. degree in Economics and his Masters in Sociology. William has always been interested in the mechanics of business and the inspiration of original thinkers, and firmly believes that the former can’t succeed without the latter. In his spare time, he enjoys the ridiculous spectacle of watching table tennis on a big screen (preferably at a pub) and reading weighty tomes about World War II.

31 COMMENTS

  1. It is interesting to note that US is the second largest producer of oil after Saudi Arabia but still has to rely on Saudi and Latin America’s oil. If US tapped its own natural resources fully then it might not rely on imports or may be even export oil which which shall be fantastic.

     
  2. Getting away from reliance on Middle East sources is good, but I think we can work a lot harder to get the percentage of renewables up. You’re ignoring the elephant in the room which is the release of greenhouse gas and resulting climate change that fossil fuels causes.

     
  3. If the United States tapped its own natural resources fully then it might not rely on
    imports or may be even export oil which which shall be fantastic.
    But overall this was an interesting article and I look forward to read more stuff

     
  4. This is exciting times for the people of Michigan and a big surprise to me that the state has so much hidden resources that has only been recognised quite recently.

     
  5. As an outsider, Michigan as we hear about it is at a dilapidated state, or perhaps that’s just Detroit. If this resource could be tapped without disrupting the lives of the residents, it could be quite the success.

     
  6. This is an amazing company. I’ve invested significant amounts of money in oil and gas exploration in Michigan and have made a sizable return on investment

     
  7. It’s very promising to know that the U.S is going not stir away from relying on the Middle East for all of it’s importation. Hopefully this will greatly help stimulate the economy.

     
  8. While I am happy at the thought that we are distancing ourselves more from the Middle East, I would be interested in knowing if the oil in Michigan will have to be extracted via more questionable ecological means (like fracking). I would rather see our country move even farther away from oil and more towards solar, wind and other renewable resources. I seem to remember a grid built in one of the Great Lakes at one time to take advantage of the difference in temperature between one lake and another at a transition spot. Is that still in progress?

     
  9. This is great news & exciting times for the people of Michigan. The US is the 2nd top oil producer, and we should use what resources we have available to us instead of relying on Middle East and Latin Countries. Michigan has a wonderful commodity that WE in the US should utilize. This will help the US stabilize our gas prices.

     
  10. Self sufficiency is not just desirable; it is essential for an economy to thrive. The only way that a developed economy will be able to afford to invest in new green technologies is to avoid being held to ransom by price fixing cartels as the more traditional sources of energy start to dry up. Developing Michigan’s reserves buys time for new technology to be developed.

     
  11. I’m actually kind of excited someone is taking action in Michigan – seems like one of the only states that a lot of people take for granted in the economy. Hopefully all of this talk about the oil is legit and not just fluff. I’m sure a lot of people would welcome the economic boost.

     
  12. Sounds like some good news for the people of Michigan! The ability to tap into the oil reserves will greatly increase the states revenue and will greatly decrease the entire nations dependence on foreign oil!

     
  13. I lived in Michigan, and I am so happy this is one step to making my home a better place. Other states and countries should look into this practice as well. I would love to see it improved even further!

     
  14. Good news. The people of Michigan should be happy with that. while we have so much resources inside, no need to rely on other countries. No more waiting for thriving and boosting our economy.

     
  15. As the world’s largest consumer of oil, the United States should find alternative power sources like renewable energy. Burning of fuel for energy is such an environmental issue.

     
  16. Good news for Michigan… Bad news for the environment. Look for fuel alternatives instead people. Help the environment recover from years of burning of fuel.

     
  17. Good news for Michigan… Bad news for the environment. Look for fuel alternatives instead people and help our environment recover from years of fuel burning.

     
  18. Interesting topic – I haven’t seen many other articles related to oil in Michigan but if it helps the economy, brings jobs to the residents and helps us be more self-reliant I’m all for it! I wonder how soon this could actually be a reality!

     

LEAVE A REPLY

Please enter your comment!
Please enter your name here

*