Hey there OilPatch Crew. Adam Oxsen here.

Ah, Venezuela. It’s downfall is a gut-punch of a story about how a country sitting on the world’s largest oil reserves turned fortune into failure. From corrupt leadership to reckless policies, Venezuela’s collapse is a masterclass in what not to do in the energy game.

Here are 10 hard-hitting takeaways from Venezuela’s mess to keep us sharp in the oil patch.

1. Even the Biggest Reserves Can’t Save You
Venezuela’s got 303 billion barrels—the most on the planet—but exports dropped 20% to 700,000 barrels per day in April 2025, the lowest in nine months, per Reuters. Resources don’t mean squat if you mismanage them.

2. Desperation Drives Exodus
The thread pegged 7 million fleeing Venezuela, but World Vision’s 2024 report ups that to 7.7 million, with 2.9 million in Colombia alone. Hunger and economic ruin pushed families to walk hundreds of miles for survival. Bad policy doesn’t just hurt economies—it breaks lives.

3. Nationalize Smart, or Don’t Bother
Hugo Chávez’s 2007 oil nationalization could’ve worked, but Venezuela didn’t reinvest like Norway, which built a $1.4 trillion sovereign wealth fund by 2025. Treat your oil wealth like an ATM, and you’ll end up broke.

4. Corruption Can Bleed You Dry
PDVSA lost $70 billion to embezzlement—officials lived large while wells died. A 2023 EL PAÍS report adds fuel to the fire, showing purges and the Petroleum Minister’s resignation amid corruption probes. Greed can gut an industry.

5. Price Controls Can Backfire Hard
Venezuela’s artificial pricing tanked the non-oil economy by 70%. When Maduro lifted some controls in 2019, inflation eased briefly, per Wikipedia’s 2025 update. Ignore basic economics, and you’ll choke your own supply chains.

6. Printing Money Is a One-Way Ticket to Ruin
A 20-30% monthly money supply increase led to 63,000% annual inflation by 2018. It’s Economics 101: flood the market with cash, and it’s worth less than dirt. Hyperinflation isn’t a glitch—it’s a death spiral.

7. Expertise Is Non-Negotiable
Firing 18,000 PDVSA engineers in 2002 after a strike gutted the industry’s brain trust. EL PAÍS notes this turned a meritocracy into a political circus by 2003. You can’t run an oil company on loyalty alone—skills matter.

8. Subsidies Can Fuel the Wrong Fire
Gas at $0.01/gallon cost Venezuela $10 billion a year in smuggled fuel. Subsidies meant to help folks ended up feeding black markets. Good intentions don’t mean good outcomes if you ignore reality.

9. Diversify or Die
The UAE’s non-oil sector hit 73% of GDP by 2025, while Venezuela stayed 95% oil-dependent. One built gleaming cities; the other became poorer than Haiti. Clinging to oil alone is a losing bet in today’s world.

10. Policy Failures Can Outdo Any Disaster
A 65% GDP drop from 2013-2021—worse than the Great Depression—came from pure policy failure, not war or natural disaster. It’s a rare kind of collapse, and a loud warning: leadership matters more than what’s underground.

Parting Thoughts
Venezuela’s story is a tragedy, but it’s also a wake-up call. In the oil patch, we’ve got to play smarter—balancing innovation, ethics, and strategy to avoid these kinds of self-inflicted wounds. Let’s keep learning and drilling smart!

Thanks for reading this edition of the Oil Patch!

Stay oily, my friend…and BE GREAT.

— Adam Oxsen

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Hey OilPatch Crew, Adam Oxsen here. Ever heard of Marc Rich? This guy turned oil trading upside down. He went from fleeing Nazi persecution to building a $2 billion empire, only to become America’s most wanted fugitive. His story is wild, messy, and packed with lessons for anyone in the energy game. 

I’ve boiled it down to 10 takeaways to help us navigate the highs and lows of this industry:

1. Game-Changing Ideas Can Redefine an Industry
Marc Rich’s creation of the spot oil market in the 1970s shattered the chokehold of long-term contracts. That single move still powers today’s $4 trillion oil industry. Innovate boldly—it can change everything.

2. Profit Over Politics Comes at a Cost
Rich traded with Iran during the 1979 hostage crisis, putting business above geopolitics. It made him millions but painted a target on his back. In this industry, we’ve got to weigh the ethical lines we’re willing to cross.

3. Play Hard, But Know the Legal Blowback
In 1983, Rich got slapped with 65 criminal counts—think $48 million in tax evasion and wire fraud. Aggressive moves can bring big wins, but they can also land you in hot water if you’re not careful.

4. Global Reach Can Outpace Local Laws
Rich ran his empire from Switzerland for 17 years as a fugitive, dodging the FBI. It shows how tough it is to enforce U.S. laws on global oil players. We’re playing on a world stage—act like it.

5. Money and Politics Can Stir a Storm
Rich’s 2001 pardon by President Clinton, tied to hefty donations from his ex-wife Denise, sparked outrage and investigations. It’s a stark reminder that political influence in this industry can come with serious blowback.

6. Geopolitical Loopholes Can Be a Goldmine—and a Minefield
Rich made millions with 78 secret oil shipments to apartheid South Africa, dodging UN sanctions. Exploiting gaps can be profitable, but the moral cost can haunt your legacy.

7. Your Vision Can Outlive You
Rich founded Glencore, now a commodities giant, even after selling his stake under pressure. One innovator can reshape an industry for generations. Build something that lasts, even if you’re not there to see it.

8. Philanthropy Doesn’t Erase the Past
While on the run, Rich donated $150 million to Israeli institutions. It shows you can do good with your wealth, but it won’t wipe the slate clean if your dealings are shady.

9. Crises Are Where Contrarians Thrive
During the 1973 OPEC embargo, when oil prices quadrupled, Rich bought low and sold high while others panicked. Chaos in this industry isn’t a dead end—it’s a chance to outsmart the crowd.

10. Relationships Can Be Your Lifeline—or Your Undoing
Rich’s pardon came after Israeli PM Ehud Barak lobbied for him, tied to alleged intelligence work. In oil, your network can save you, but it can also drag you into murky waters. Choose your allies wisely.

Parting Thoughts
Marc Rich’s story is a rollercoaster—part genius, part cautionary tale. He reshaped how we trade oil, but his methods left a trail of ethical questions we can’t ignore. In the oil patch, we’re always walking that fine line between innovation and integrity.

Thanks for reading this edition of the Oil Patch!

Stay oily, my friend…and BE GREAT.

— Adam Oxsen

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In the vast landscape of American entrepreneurship, few names resonate with the quiet yet profound impact as Philip Anschutz. Known as the "billionaire you've never heard of," Anschutz's journey through the oil industry and beyond is a testament to resilience, foresight, and the American dream.

From Kansas Roots to Oil Baron

Philip Anschutz, born in 1939 in Russell, Kansas, grew up with oil in his veins. His father, Fred B. Anschutz, was an oil wildcatter, a man who knew the highs of discovery and the lows of dry wells all too well. This upbringing wasn't just about learning the family business; it was a masterclass in the oil industry's volatility and the art of resilience.

Anschutz's mother, with her teaching background, instilled in him a strong work ethic and moral compass. By the age of 14, he was already working, understanding the value of labor and integrity. His father, despite not having formal education, taught him the entrepreneurial dance of risk and reward, emphasizing that failure was just another stepping stone.

The Turning Point: From Law to Oil

Set for law school, Anschutz's plans changed when his father's health deteriorated. He took over Circle A Drilling, not to chase dreams of law but to secure his family's future. His quick stabilization and eventual sale of the business were early indicators of his savvy in turning adversity into advantage.

His first significant oil strike came in 1967 near Gillette, Wyoming. But with great fortune came great challenge; a fire erupted at the well. In a move that would define his career, Anschutz sold the rights to film this disaster to Universal Studios, which not only funded the fire's extinguishment but also made him his first million.

Diversifying the Empire

Anschutz wasn't about putting all his eggs in one basket. He expanded into uranium, coal, and cattle ranching. The '70s saw him owning oil fields across multiple states, but his most notable play was with Anschutz Ranch East. When Amoco discovered a massive oil and gas reserve nearby, instead of selling out, he expanded his holdings in the Overthrust Belt, eventually selling a stake to Mobil for $500 million right before the oil market crash in the '80s.

His ventures didn't stop at oil. Anschutz delved into railroads, telecommunications with Qwest, and entertainment, owning significant movie theater chains. His approach was to innovate, lead, and build teams of smart, ethical people. "You need the ability to be innovative," he'd say, highlighting his strategy of rethinking traditional business models.

The Quiet Philanthropist

Despite his wealth, Anschutz keeps a low profile, focusing on philanthropy, particularly in education, arts, and community development. His legacy isn't just in his business achievements but in his contributions to society, reflecting a commitment to giving back.

Philip Anschutz's journey from wildcat wells to a diversified business empire is a narrative of strategic foresight, resilience, and humility. In the oil patch, he's a testament to how one can navigate through the industry's inherent risks to achieve monumental success, always with an eye on the horizon, seeing opportunities where others see only obstacles.

Thanks for reading today’s Oil Patch!

Stay oily, my friend…and BE GREAT.

—Adam Oxsen

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Ever wonder why your money feels like it's stuck in place, despite playing by all the investment rules?

I'm here to tell you something Wall Street hopes you never figure out.

It's all about T-bills, money-market accounts, municipal debt — the supposedly "risk-free" investment that's leaving many of you in the dust while others are quietly amassing piles of cash.

The Stagnation of "Safe" Investments

Ask most investors where real wealth comes from, and they’ll tell you it's not from stacking up government securities. Treasury bills might give you a sense of security, but what they offer in return is nothing short of disappointing.

Right now, T-bills yield 4.70%, but after you strip away inflation, which has been chugging along at 3.5%, you're left with a real growth rate of just 1.2%. That means your $100,000 isn't growing into much more than $101,200 in real terms over a year.

Now, contrast that with alternative assets like energy bonds with 10-12% returns. These products are sprinting past with real returns of 6.5%. Invest that same $100,000 here, and you're looking at $106,500 at the end of the year. That's the power of investing in assets that actually produce something tangible.

The Long-term Impact

Let's stretch this out over five years to see just how wide the gap becomes. Your $100,000 in T-bills would grow to a measly $106,100, but with energy bonds, you'd be sitting pretty with $137,000.

That's a $30,900 difference, which could be the key to funding a college education, buying a home, or kickstarting your next business venture.

Why Wall Street Keeps Quiet

The financial gurus on Wall Street love to preach the gospel of safety, but here's the kicker: playing it too safe might just be the riskiest game of all.

They won't tell you this because there's no profit in admitting that the so-called safe havens they promote are actually stunting your financial growth.

Our energy bonds, however, offer something different. They promise 10-12% annual returns, not just on paper but backed by the real oil and gas assets in Oklahoma. Unlike T-bills, this isn't just a promise; it's backed by the physical extraction of resources, creating real, monthly value.

The Power of Hydrocarbons

Energy isn't just another sector; it's the lifeblood of our civilization. Every light switch flipped, every car driven, every factory humming - all of it requires energy. And those who control the supply are in a unique position to not just earn, but to build lasting wealth.

Here's the deal: while everyone else is distracted by Wall Street's shiny new toys, the smart money is quietly moving into energy. Because when you invest in energy, you're not just investing in a company; you're investing in the very foundation of modern life.

Remember, in the world of investments, sometimes the biggest risk is not taking enough risk. It's time to rethink what "safe" really means for your financial future.

Thanks for reading today’s Oil Patch!

Stay oily, my friend…and BE GREAT.

—Adam Oxsen

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This tech company grew 32,481%..

No, it's not Nvidia. It's Mode Mobile, 2023’s fastest-growing software company according to Deloitte.

They’ve just been granted their Nasdaq stock ticker, and you can still invest at just $0.26/share.

Learn More

*Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.
*The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.
*Please read the offering circular and related risks at invest.modemobile.com.

Here's the real deal on "clean energy" that the media won't spill:

Solar panels

They're not the green saviors they're hyped up to be. Only about 10% of these things get recycled. The rest? Straight to the landfill, where they leak crap like lead and cadmium into our environment. So much for being eco-friendly.

Let's talk raw materials

These panels are junkies for rare earth metals, a lot of which we get from China. This means we're not just dependent on foreign supply chains, but we're also ignoring the dirty side of mining those metals - pollution and habitat destruction.

Then there's the land grab

Solar farms gobble up acres of land. We're talking 5 to 10 acres just for a megawatt of power. That's a lot of space when you start scaling up for real energy needs, clashing with farming or conservation.

Don't get me started on extreme weather

Sure, they work great on a sunny day, but throw in some heavy snow, fog, or a good old-fashioned hailstorm, and their efficiency tanks or they get physically wrecked. So, when you're told solar is reliable, remember, it's only when Mother Nature plays nice.

The truth is…

Solar energy has its place, but let's not kid ourselves into thinking it's the silver bullet for our energy problems. We need to look at the whole lifecycle, push for better recycling, rethink how we source materials, and maybe stop pretending one solution fits all in the energy game.

Sustainable energy is about being smart, not just green. It's time to look under the hood of what we're selling as "clean" and start fixing the real issues.

Thanks for reading today’s Oil Patch!

Stay oily, my friend…and BE GREAT.

—Adam Oxsen

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Your entire life depends on one substance:

OIL

It's in your cosmetics, electronics, and food packaging. Even the crazy activists who hate it can't protest without using it. Here's the truth about oil and why it's impossible to get rid of:

The hypocrisy of "Just Stop Oil" protesters is clear. They wear synthetic clothes made from petroleum, use phones full of petroleum products to film their actions, and even the spray paint they use is petroleum-based.

But this goes beyond protests

Oil pervades everyday life. Up to 80% of ingredients in your shampoos, lipsticks, and creams are petroleum-based. Ever heard of petrolatum? It was discovered by oil workers for its healing properties.

Your smartphone is a petroleum marvel with circuit boards using petroleum-based resins, plastic casings derived from petroleum, and screen coatings often made from oil-based materials.

Even the "green revolution" relies on oil. Electric cars need petroleum-based plastics, wind turbines use petroleum composites, and solar panels involve oil in their manufacturing.

In medicine, the field would literally fall apart without oil. From IV bags to surgical equipment, petroleum derivatives are crucial.

After centuries of use:

Oil isn’t going anywhere. And it isn't just about energy; it's the backbone of modern civilization. Every alternative runs into the same issue - nothing matches oil's versatility or cost-effectiveness.

Let's look at the numbers: Exxon Mobil in 2021 saw 30% of its revenue from non-fuel petroleum products. That's billions from things like plastics, not just gasoline.

While the world chases the "green dream," the reality on the ground is different. Global demand for oil is still on the rise, its infrastructure is irreplaceable in the short term, and applications for petroleum are only expanding. Smart money knows this - China is investing in both renewables and fossil fuels, understanding true energy security involves both.

The bottom line is you can hate oil all you want, but living without it?

Not an option.

Thanks for reading today’s Oil Patch!

Stay oily, my friend…and BE GREAT.

—Adam Oxsen

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This tech company grew 32,481%..

No, it's not Nvidia. It's Mode Mobile, 2023’s fastest-growing software company according to Deloitte.

They’ve just been granted their Nasdaq stock ticker, and you can still invest at just $0.26/share.

Learn More

*Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.
*The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.
*Please read the offering circular and related risks at invest.modemobile.com.

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My family has been in the upstream oil & gas business for three generations now. We’re not directly involved in the transport of oil, or the transmission of gas. We don’t refine crude or process liquids. We don’t run a natural-gas-fired power plant.

But we do live in the same energy-guzzling world as everyone else.

And let me tell you, the energy demand numbers I'm about to share are simply wild.

We're not just talking about a slight uptick in energy use…

By 2027, the electricity consumed by AI could surpass the total energy use of entire nations.

A single AI model

Can drain as much juice as 130 American homes use in a year. Microsoft's carbon footprint has ballooned by 30% since 2020 due to AI, and Google's emissions have skyrocketed 50% since 2019.

This kind of growth isn’t something that can be covered by current energy production; it's going to require new power plants everywhere.

By 2026

AI will be chowing down on over 40% of the power in data centers. Almost half of our available electricity — just to keep AI humming.

And by 2027, AI might be responsible for 0.5% of the world's electricity - that's more than some countries use.

But here's the deal - AI doesn't take breaks. It needs power non-stop, every single day. When the sun's not shining or the wind's not blowing, AI's still demanding energy.

From 8 TWh to 52 TWh in just two years - that's the growth curve. A 550% increase in AI's power appetite by 2026, like adding five Chicagos to our grid in one go.

This isn't just about servers for LLMs

Our whole modern life runs on energy — yours and mine.

No natural gas, no fertilizers — no food.

Your gadgets? Made from oil.

And those deliveries you love? Powered by diesel.

Americans burn through 3 gallons of oil products every day.

Here's my take on why American energy's where the smart money is:

Energy isn't just about keeping our devices on; it's about powering our future. It's the backbone of our tech-driven world.

Oil and gas? They're not just resources; they're cash cows. With AI's endless need for power, we're looking at what might be the energy industry's biggest opportunity of the decade.

Thanks for reading today’s Oil Patch!

Stay oily, my friend…and BE GREAT.

—Adam Oxsen

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Have you ever been to a wine tasting dinner? Often there is a reception that begins with some sort of sparkling wine. When guests are finally seated there might be a salad with a Chardonnay, then an appetizer with a medium-bodied Red. Next a medium-rare steak with a big old Napa cab…

We would all agree that each of those wine was different in taste, color, and consistency, right?

Well, a barrel of oil is no different than a bottle of wine.

The Myth of Uniform Oil

Many believe oil is just oil, but that's far from the truth. The real story is all about quality.

The key here is API gravity. It's how we measure oil's density in the industry.

The higher the API number, the lighter and more valuable the oil. Water has an API gravity of 10; oil with an API above that floats, below it — the oil sinks.

A Tale of Two Oils

Let's look at two contrasting examples:

• Saudi Arabia's Arab Light, with an API gravity of 33°, flows through pipelines like water.

• In contrast, Venezuela's extra-heavy crude, with an API below 10°, is like trying to move syrup through a straw - a real challenge.

Economic Dominoes

This difference isn't just academic; it has profound economic impacts:

In Venezuela, handling this heavy crude means adding lighter oils to make it move, heating pipelines constantly, and investing more energy and money into extraction.

Saudi Arabia's oil, however, flows with ease, like a well-oiled machine (haha, sorry couldn’t resist).

How does this play out in the market?

Venezuela faces discounts of $10-15 per barrel, billions spent on specialized infrastructure, slow market responsiveness, and elevated processing costs by a factor of 2-3.

The math is clear: at 1 million barrels a day, that's $10-15 million in lost revenue each day, translating to $4-5 billion annually in discounts alone.

Contrast this with Saudi Arabia, where lighter crude means lower costs, faster production, and enviable profit margins.

The Gold Standard

Then there's West Texas Intermediate (WTI) from the U.S., with an API gravity of 39.6 - light, sweet, with barely any sulfur. It's the oil industry's equivalent of a premium product.

But there's hope for those with heavy crude:

"Complex" refineries, rated by the Nelson Complexity Index (NCI), can turn this challenge into opportunity. Higher NCI refineries can process heavy crude into profitable products, earning $15-25 per barrel, while simpler refineries with light crude might only see $5-10.

Jamnagar Refinery in India, with an NCI of 21.1, is a prime example, adept at handling the heaviest, sourest crude. However, such capability requires substantial investment.

This scenario sets up an intriguing dynamic:

Countries with light, sweet crude can command premium prices. Those with heavy crude must decide - sell at a discount, invest in complex refining, or let their oil reserves remain untapped.

The Takeaway

In the oil industry, it's not just about how much you have; it's about what you have. Quality is king, and understanding this is crucial for anyone looking to make smart moves in the energy sector.

Stay vigilant, keep learning, and remember, in energy, knowledge doesn't just create opportunity; it defines it.

That’s it for today. Thanks for reading today’s Oil Patch!

Stay oily, my friend…and BE GREAT.

—Adam Oxsen

PS — Two quick requests before you go:

• If you found this useful, forward this email to a friend to spread the word. 👇

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• How can I help? I offer 10-12% fixed-rate energy bonds for accredited investors — Schedule a meeting with me.

Let's get straight to the point - electric vehicles are the darlings of the “green” movement, but they come with their own set of baggage.

While they're sold as the ultimate clean transport solution, the reality is more complicated.

EVs might not spew exhaust, but their creation?

That's a whole other story. We're not just talking about a few extra emissions here - it's a significant carbon hit before the car even rolls off the assembly line.

Mining and Material Extraction

We're talking lithium, cobalt, nickel - the lifeblood of EV batteries. These materials don't just magically appear; they're dug out of the earth using heavy machinery, often powered by diesel.

The refining process? Even more energy-intensive, relying on fossil fuels in many regions. And let's not forget the environmental damage from mining - deforestation, water pollution, and habitat destruction.

Yikes.

It's a carbon-heavy start for these so-called clean machines, and the human and ecological costs are high.

Battery Manufacturing

Making one EV battery is like running a small town's worth of power, often from coal or gas. Studies estimate that producing a single battery for something like a Tesla Model 3 can emit 3 to 10 tons of CO2, depending on the energy source. That's because battery production involves high-temperature processes, chemical treatments, and a lot of electricity.

In places like China, where coal dominates the grid, the carbon footprint is even worse. It's a massive upfront cost that offsets the "zero-emission" promise right out of the gate.

Assembly and Transport

Building and moving parts around? More fossil fuels.

From the steel in the chassis to the plastics in the interior, the manufacturing process relies on energy that's often dirty.

Then there's the global supply chain - components are shipped across oceans, flown between continents, all powered by oil-based fuels.

Your EV's got a carbon footprint from the get-go, and it's not small.

Add in the energy needed for factory operations, and you're looking at a vehicle that's already clocked up significant emissions before it even hits the road.

The Real Energy Picture

Modern life is built on oil and gas, period. From our gadgets to our hospitals, it's all tied to fossil fuels.

EVs are no exception - they're part of the same system, and pretending otherwise is just wishful thinking.

Charging with Coal?

If your power's coming from a coal plant, your EV's not as green as you think.

In the U.S., for example, about 20% of electricity still comes from coal, and in places like West Virginia or Wyoming, it's even higher. Globally, coal and natural gas make up a huge chunk of power generation.

So, when you plug in your EV, you're often drawing from a grid that's far from clean. Sure, if you're charging with solar or wind, it's “better”, but…that's not the reality for most people.

EVs are only as green as the power they use.

And “green” = hydrocarbons (no matter how you square it).

Those charging stations and grid upgrades?

They've got an environmental price tag, too. Building a charging network means manufacturing concrete, steel, and electronics - all energy-intensive processes.

Upgrading the grid to handle increased demand? More construction, more materials, more emissions.

And let's not forget the land use - charging stations need space, which can mean clearing land or repurposing existing areas. It's a hidden cost that gets glossed over in the rush to electrify everything, but it's real and it's significant.

Looking at the Full Lifecycle

Here's where EVs stand against gas cars - it's not just about tailpipe emissions; it's about the whole lifecycle, from cradle to grave.

Break-Even Point?

An EV needs to be driven a metric ton of miles before it's cleaner than a traditional car. Studies suggest that, depending on the size of the battery and the cleanliness of the grid, an EV might need to travel anywhere from 20,000 to 50,000 miles to offset its manufacturing emissions compared to a gas car.

And let's not forget - not everyone keeps their car that long. If you trade in after a few years, you might never reach that break-even point, leaving the environment worse off.

How long do these batteries last, and can we recycle them without causing more harm?

That's the real question. Most EV batteries are rated for 8-10 years or 100,000-150,000 miles, but that depends on usage, climate, and charging habits.

After that, they're not useless - they can be repurposed for energy storage - but recycling is…tricky. Current methods are energy-intensive and not always efficient, and the materials recovered aren't always reusable.

Plus, there's the risk of toxic waste if batteries aren't disposed of properly. Oh, yay! Toxic waste! It's a challenge not fully solved yet, and it could undermine the long-term benefits of EVs.

EVs are interesting…

…no doubt, but they're not the zero-emission saviors they’re made out to be. If you like the tech, and the feel, and the drive…RAD.

Enjoy 0-60mph in however many seconds the Plaid is doing now, but don’t go feeling all morally superior like your HeLpInG sAvE tHe PlAnEt…

The planet doesn’t need saving, and it’s greening up more each day.

That’s it for today. Thanks for reading today’s Oil Patch!

Stay oily, my friend…and BE GREAT.

—Adam Oxsen

PS — Two quick requests before you go:

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• How can I help? I offer 10-12% fixed-rate energy bonds for accredited investors — Schedule a meeting with me.

The True Carbon Cost of Your iPhone

Alright, folks, let's talk straight. We're all about that big iPhone [you know the one… (sorry, this is an obscure Ben Rector reference)]…

But have you ever stopped to think about the real price tag? I'm not talking dollars here; I'm talking about the environmental cost, specifically the hydrocarbon intensity.

Mining: The Deep Dive

First up, let's talk about where it all begins.

Your iPhone's innards? Made up of all those shiny bits & pieces?

They come from the earth, and extracting them isn't like building a sand castle at the beach. We're talking major mining operations for gold, silver, and those rare earth elements.

It's energy-intensive, and guess what fuels that energy? Oil, gas, diesel. Those big earth movers aren’t powered by windmills...

Manufacturing: The Big Emission

Now, here's the kicker. Manufacturing is where the real carbon footprint of your iPhone takes shape. About 80% of the emissions happen here.

Why? Because those assembly lines in China are powered by energy grids that lean heavily on fossil fuels. Every iPhone you buy has a slice of that carbon pie attached to it.

Transport: The Global Shuffle

Think about this - the components for your iPhone travel more than some of us do in a lifetime. From one part of the world to another, often by air, which is one of the highest carbon-emitting methods of transport.

Apple's trying to green up the logistics, but the scale at which iPhones move globally means there's still a hefty hydrocarbon toll.

Usage: Powering Up Your Life

Every time you charge your iPhone, you're adding to its carbon story. If you're in an area where electricity comes from coal or gas plants, you're contributing to the hydrocarbon intensity.

Apple's got some cool features like Clean Energy Charging, but we've got to recognize, it's just deceptive marketing.

End of Life: What Happens Next?

When your iPhone's days are numbered, what then?

Ideally, it goes into recycling, but that process isn't free from environmental impact either. Recycling still involves energy, and that’s very intensive to melt down and collect the precious minerals on the inside of that big iPhone.

The Takeaway:

Here's the deal: Your iPhone is more than just tech; it powers relationships, connection, commerce…you name it! In modern life, your phone is always a big part of whatever it is you are doing.

But it's also a piece of a bigger environmental puzzle. We need to think about the full lifecycle - from mining to disposal. Is this something you’re willing to give up — or even call wrong to own — because of the “green” agenda?

I’d say there’s a lot more good done, than harm.

What do you think?

Thanks for reading today’s Oil Patch!

Stay oily, my friend…and BE GREAT.

—Adam Oxsen

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Good morning, here's what the OilPatch Team has for you today:

• Chris Wright Gets Down To Business

• Another Big Oil Does U-Turn on Net Zero

• Tweet of the Day

  • Thanks for reading today’s Oil Patch!

Daily Prices 02/07/25

Chris Wright Gets Down To Business

Chris Wright, the new Secretary of Energy, is wasting no time.

He just issued an executive order to prioritize energy production over net zero.

For good measure, he also slammed wind and solar for reliability and cost problems.

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Underperforming IRA…?

Charlie Munger (Warren Buffett’s partner and investing genius) said:

“If you go back to what the rich people of England did back, say, in 1900, they bought consoles, 2.5%, no inflation. Two and a half percent return…you’d be satisfied with that.

“No rich people thought there was any safe way of getting 8% if you go back to 1880 among the rich people of England.”

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Another Big Oil Does U-Turn on Net Zero

Norway’s Equinor has become the latest supermajor to ditch net zero.

Previously one of the most ambitious transitioners, now it is focusing on oil and gas.

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Heads up, friend:

The OilPatch newsletter has been going strong now for over two years now — two years! But I’m going to making some changes to it. More topical, and less daily news. I hope you’ll enjoy the change. Thanks for being along for the ride, and keep an eye out on Monday for the editorial / style shift. Blessings ✌️ - Adam Oxsen, Editor

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• Millionaire of the Week: Mark Hiduke

• Trump Takes Aim at DoE Transition Loans

• Tweet of the Day

Daily Prices 02/06/25

Millionaire of the Week: Mark Hiduke

The acquisition wiz

When Mike Hiduke graduated from Southern Methodist University, his career goal was investment banking.

As luck would have it, the timing couldn’t be worse.

It was 2008, the global financial crisis was in full swing and investment banking wasn’t hot.

At all.

So after a short stint as a financial analyst, Hiduke took a job with Pioneer Natural Resources.

In their asset acquisitions division.

It was during his time with Pioneer that he noticed something.

There was a lot of small-scale acreage being sold…

And it was getting ignored by the big fish in the oil pond.

But it wasn’t ignored by Hiduke.

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Underperforming IRA…?

Charlie Munger (Warren Buffett’s partner and investing genius) said:

“If you go back to what the rich people of England did back, say, in 1900, they bought consoles, 2.5%, no inflation. Two and a half percent return…you’d be satisfied with that.

“No rich people thought there was any safe way of getting 8% if you go back to 1880 among the rich people of England.”

Beat the “Rich people of England”

US Treasury Bills are around 4% per annum. Money market rates are around 4.75% per year. Why would you let your money sit useless in a savings account?

Put it to work with ROX Energy and make a 10% yearly ROI with a third-generation oil & gas family company.

ROX has 35+ Years of Experience

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Learn more at ROX Energy Capital

Trump Takes Aim at DoE Transition Loans

The Trump admin is considering ways to cancel billions in transition loans.

A lot of these were handed out in a rush last year after the November election.

We’re talking close to $40 billion in last-minute loans.

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• OPEC Won’t Play Ball with Trump

• China Slaps Tariffs on U.S. Crude, LNG

• Tweet of the Day

Daily Prices 02/05/25

OPEC Won’t Play Ball with Trump

OPEC has signaled it won’t heed Trump’s calls for lower prices.

It’s probably the least surprising news of the year after the EU’s gas trouble.

And it might spell more trouble.

Underperforming IRA…?

Charlie Munger (Warren Buffett’s partner and investing genius) said:

“If you go back to what the rich people of England did back, say, in 1900, they bought consoles, 2.5%, no inflation. Two and a half percent return…you’d be satisfied with that.

“No rich people thought there was any safe way of getting 8% if you go back to 1880 among the rich people of England.”

Beat the “Rich people of England”

US Treasury Bills are around 4% per annum. Money market rates are around 4.75% per year. Why would you let your money sit useless in a savings account?

Put it to work with ROX Energy and make a 10% yearly ROI with a third-generation oil & gas family company.

ROX has 35+ Years of Experience

Don’t risk your hard earned money with new operators or risky drilling deals. Invest in a bond with an established family business.

Learn more at ROX Energy Capital

China Slaps Tariffs on U.S. Crude, LNG

China has slapped tariffs on LNG and oil imports from the U.S.

The move comes in response to the latest U.S. tariffs on Chinese imports.

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• Vitol Shatters Gloomy Oil Demand Predictions

• Trump Unleashes Tariffs on the World

• Tweet of the Day

Daily Prices 02/04/25

Vitol Shatters Gloomy Oil Demand Predictions

Vitol has slapped gloomy oil demand forecasters in the face.

The commodity major says demand will keep growing until at least 2040.

The IEA must be outraged.

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Underperforming IRA…?

Charlie Munger (Warren Buffett’s partner and investing genius) said:

“If you go back to what the rich people of England did back, say, in 1900, they bought consoles, 2.5%, no inflation. Two and a half percent return…you’d be satisfied with that.

“No rich people thought there was any safe way of getting 8% if you go back to 1880 among the rich people of England.”

Beat the “Rich people of England”

US Treasury Bills are around 4% per annum. Money market rates are around 4.75% per year. Why would you let your money sit useless in a savings account?

Put it to work with ROX Energy and make a 10% yearly ROI with a third-generation oil & gas family company.

ROX has 35+ Years of Experience

Don’t risk your hard earned money with new operators or risky drilling deals. Invest in a bond with an established family business.

Learn more at ROX Energy Capital

Trump Unleashes Tariffs on the World

Trump has followed up on his tariff threats, beginning with Mexico and Canada.

All imports from these countries are now subject to a 25% import levy.

Except Canadian crude. That’s got a discount, so it’s 10%.

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• Scottish Court Stops Two Oil, Gas Projects in UK

• Shell CEO Spells Out Transition Problems

• Tweet of the Day

Daily Prices 02/03/25

Scottish Court Stops Two Oil, Gas Projects in UK

A Scottish court has ruled the approvals for two oil and gas fields in the North Sea were “unlawful”.

The basis? The approvals didn’t account for Scope 3 emissions from those fields.

The UK really hates its own energy.

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Shell CEO Spells Out Transition Problems

The energy transition is not making any money.

It must start making some or it’s in for a lot of trouble.

That’s the essence of a message that Shell’s CEO Wael Sawan delivered this week.

And then he said it’s not happening without mandates.

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• Chinese AI Ripple Effect Spreads to Natgas Stocks

• Former IEA Exec Slams Agency for Dangerous Delusio …

• Tweet of the Day

Daily Prices 01/31/25

Chinese AI Ripple Effect Spreads to Natgas Stocks

The news of the week is that a Chinese startup released a cheap AI assistant.

Big Tech stocks tanked.

Then the rout extended to natural gas companies.

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Listen to Oilmen

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These men built the modern world with abundant and cheap energy. Listen now to Oilmen.

Former IEA Exec Slams Agency for Dangerous Delusion

A former IEA executive has accused the agency of being delusional.

In a 30-page report, Neil Atkinson has called this behavior dangerous, risking trillions in investment.

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• Billionaires of the Week: The Double Eagle Boys

• Notorious Activist Investor Flip-Flops on Gas

• Tweet of the Day

Daily Prices 01/30/25

Billionaires of the Week: The Double Eagle Boys

From landmen to shale tycoons

John Sellers and Cody Campbell became friends in high school in Amarillo.

In college, the two got into business together – in real estate.

After the 2008 financial crisis struck, they changed direction.

And now their worth is estimated at close to $7 billion.

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Notorious Activist Investor Flip-Flops on Gas

A few years ago, Engine #1 forced Exxon to make ESG commitments.

Now, it’s building gas power plants with Chevron.

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• 2025 M&A Wave Begins With $1.3-Bln Maverick Acquis …

• Europe To Drive Surge in LNG Demand

• Tweet of the Day

Daily Prices 01/29/25

2025 M&A Wave Begins With $1.3-Bln Maverick Acquisition

Diversified Energy, a natural gas producer, has acquired Maverick Natural Resources for $1.3 billion.

The resulting company is valued at $3.8 billion.

It’s a pretty strong start to another year of M&A in the oil patch.

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Europe To Drive Surge in LNG Demand

Europe is set to drive a massive surge in LNG demand this year.

The continent will need 120 new cargos to fill its storage this summer.

The price tag? At least $6 billion.

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• From Barrels to Chicken Coops: A Saudi Story

• Wall Street Set To Crush Trump’s Energy Dominance …

• Tweet of the Day

Daily Prices 01/28/25

From Barrels to Chicken Coops: A Saudi Story

Saudis are switching from pumping oil to raising chickens.

It’s called diversification and it’s working a charm.

But if anyone thinks they’re going to “keep it in the ground”…

That’s not happening.

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Wall Street Set To Crush Trump’s Energy Dominance Vision

Trump wants oil drillers to drill more.

But bankers are not going to let that happen.

And it’s bankers who call the tune, so “Drill, baby, drill” is not happening.

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