Allied Energy Corp. (OTCMKTS:AGYP) continues pumping oil from five wells in Texas as WTI Crude and Brent Crude jump in price. The cost of global oil settled higher last night as fears over the impact of the omicron COVID-19 variant eased.
Global oil volatility needs to be resolved and become more stable. Both WTI and Brent indices rose 5% last night at $70 per barrel prices and higher. To AGYP, this makes domestic oil even more valuable.
“It seems Wall Street is optimistic that the growth story is still intact as omicron seems like it might be leading to less serious illness than delta,” Ed Moya, Senior Market Analyst at Oanda Corp., tells Bloomberg and site worldoil.com/news.
As scheduled, Saudi Arabia and OPEC+ planned to raise oil output for the U.S. and Asian clients beginning in January. Iranian oil, it appears, will not be flooding the market, as hoped.
In this environment, oil traders believe that higher commodity prices are warranted and price premiums are justified. This follows six straight weeks of oil price declines. Meanwhile, bids are due Monday for oil released from U.S. government Strategic Petroleum Reserves (SPR).
Against this backdrop, the 23rd World Petroleum Congress opens in Houston. It attracted 5,000 participants from some 70 countries worldwide.
Executives from Chevron, ExxonMobil Corporation and other oil energy multi-nationals praised the role of new technology in the oil industry. AGYP is practicing exactly that. By using new techniques, such as fracking, it specializes in making older abandoned and once-commercial wells new producers again.
This volatility in global oil is great for the short term for AGYP. It is pumping high-demand and increased-price domestic oil from five commercial wells. They are located on the Green Lease and Annie Gilmer lease sites.
In all of this turmoil, AGYP is exploring more oil by focusing on Well H-1 at its Prometheus leased site.
AGYP’s successful ongoing oil production and its successful leak test of its Well 2 at Annie Gilmer is critical in light of these global oil developments.
Texas recently issued triple tweets on its progress at Well 2 on the Annie Gilmer Lease in Texas.
Volatility in global oil pricing benefits AGYP. Longer term, stability in the energy market is in the company’s best interest. AGYP specializes in using new techniques to make once-commercial wells productive again.
Domestically-pumped oil is especially valuable to the U.S. because it does not need to make sometimes dangerous trips to US ports from the Middle East.
The catalyst for AGYP is that it is an independent U.S. oil-producing Company.
Keep AGYP on your energy watch list as it produces more domestic oil & gas energy. Energy supplies are priced high and in short supply.