Petrol and diesel are made from crude oil. But that’s not all – not by a long way. Despite higher recycling rates, the petrochemical industry has an increasing demand for crude oil. 80 percent of the products of the chemical group BASF are based on crude oil.
WHAT IS MADE FROM OIL
Oil is probably the most important raw material in our modern industrial society. Particularly as a supplier of energy and a fuel, it is now impossible to do without it. But crude oil is also indispensable in the chemical industry for the production of plastics. And that’s a pretty illustrious list: PVC is in window frames, floor coverings and hoses. Polyurethane is suitable for foams in upholstered furniture and mattresses. We have polyethylene to thank for thermoplastic materials such as PET bottles, films, buckets, TV housings, tupperwares and vacuum cleaners. Synthetic fibres are made from polyamide, which in turn are made into nylon stockings. Without ethylene oxide, we would have no detergents and cleaning agents, but also no antifreeze, paints or dyes. Other materials provide for car tyres as well as moulded parts and foams for the packaging and construction industries. Finally, CDs and DVDs, as well as pesticides and fertilisers, are based on crude oil components.
The demand for oil has been growing steadily for years. For example, the petrochemical demand for oil has doubled since the year 2000. Perhaps less well known is that the natural gas market is experiencing rapid growth.
China is the largest importer of gas in the world. Beijing is trying massively to combat the environmental and health damage caused by power plant and traffic emissions with a „blue sky“ policy. China’s gas needs alone will therefore account for almost 40 percent of global demand by 2023.
This makes China, after Japan, the second most important target country for LNG tankers* with liquefied natural gas. The USA is the largest exporter of liquid gas, China is the largest buyer. This justifies the expectation that trade between these two giants will increase. That would be beneficial for both countries. However, if the current trade dispute between the USA and China extends to this industry as well, both would accordingly come off as losers. In the year 2040, there will be nine billion people living on the planet, increasing energy consumption by 30 percent. That is like adding the current energy consumption of China and India again, on top of what we have today.
*(liquified natural gas, LNG)
The leading company in the RED CAVE PROJECT is the Partners & Friends Holding Corporation. The company was founded with the aim of combining two different sets of experiences in one team. The industrial part and the financial part.
The industrial partners have more than 100 years of experience in the „traditional energy economy“. The financial part consists of American experts with decades of experience and specialist knowledge in the financial markets. Long-term business and amicable relationships exist with the responsible actors. The short-term goal is to list the company on the US stock exchange OTCQB within the next 12 months. The first measures for the approval process have already been launched.
In October 2018, the company acquired exploration rights for an area of 21 square kilometres in the North Texas region (Panhandle). It is possible to generate more than 100 wells on the site. The project takes its name from the geological „RED CAVE“ formation. In-house technicians have conducted a full survey of the area. In addition, further reviews were carried out by a specialised and renowned external company, Morning Star Consultants.
The review confirmed the quality of the project and its financial potential.
The operational part of the well is being implemented by „X72 Operating Corp“. X72 has all the necessary legal licences. The manager is a qualified technician with more than 40 years of experience in the oil business.
The Panhandle oil field already has over 30,000 producing wells, most of which were created in the 1970s. The area is fully developed.
IMPRESSIONS FROM THE OILFIELD
Production has already started at several wells, and further boreholes are in progress and are being prepared for production.