Independent capital for independent producers.

James A. Gibbs

Is the World Facing “Peak Demand” Rather Than “Peak Supply”?

For at least 100 years the world has been anticipating the “rapid exhaustion” of crude oil supplies. Will we continue to be as concerned in future years as we have in the past? “Peak Oil”, the idea that global oil production would soon reach a maximum and then begin to decline, attracted a significant...

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What a Difference a Year Makes!

2017 opened with a much brighter outlook for the petroleum industry and the future for America’s energy security than did 2016. At year-end 2015 the U.S. oil industry was in a funk. In the last seven months of 2015, oil prices declined 38 percent, from more than $60 per barrel in June to $37...

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Election Year Choices

On the threshold of the November elections, we are being assailed by both major presidential candidates with charges and counter-charges, uninformed rhetoric and strident babble. Neither candidate appears willing or able to discuss energy matters with reason, nor almost any other major issue. The creativity and ingenuity of American geoscientists and engineers have led...

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When Good Wells Go Bad

Like people, oil and natural gas wells have productive lives—they are born, decline over a period of time, then are put to rest. Also like people, the length of their lives can be affected by a variety of circumstances, both physical and economic. Ultimately, however, all wells reach their economic limit and can no...

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Good News – Bad News

The US Energy Information Agency (“EIA”) recently announced that production from wells drilled since the start of 2014 made up 48 percent of total US crude oil production in 2015. With the increased use of hydraulically fractured horizontal wells, new production as a percentage of total US production has more than doubled from 22%in...

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What Happened in 2015?

As the oil industry stumbles into 2016, everyone is asking the same questions: Why did oil and natural gas prices fall so far and so fast in 2015? Did anyone see the collapse coming? Did anyone forecast it? Were OPEC or non-OPEC countries or groups to blame? Were individuals? How long will current conditions...

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Riding the Cycles

No one needs to inform west Texas citizens that the oil and natural gas industry is currently in a slump. All one has to do is drive from Midland to Odessa and count the number of drilling rigs standing idle in storage yards, or pick up a copy of Midland’s The Daily Observer to...

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30-Year Anniversary Events

Five States is celebrating our 30th year in business! We gratefully acknowledge the confidence and support of the many financial advisors, investors, business associates, employees, and friends who have been a part of our success and growth through the years. Many of the company’s current activities are “business as usual”: reviewing investment submittals, analyzing...

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The Oil Glut

Global oil prices are now near five-year lows. US producers are feeling the pain; they are not alone. Low oil and natural gas prices are causing companies and governments throughout the world to reexamine their budgets, rethink their priorities and, in some cases, make major policy decisions based on the possibility that significantly higher...

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2015 Energy Issues Outlook

Each year, JP Morgan writes a “deep dive” piece on energy. The report is a well-researched analysis that covers several specific topics. We find the report to be informative and useful as a basis for understanding current issues and forming opinions pertinent to our industry. This year’s topics include the history of energy development...

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Fracking Good

America’s shale is changing the dynamics of world energy. The reemergence of the United States as a global energy superpower is addressing many of the major problems in the United States and is having profound strategic and geo-political effects throughout the world. In November 2012, the U.S. replaced Saudi Arabia as the world’s largest...

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Sunshine and Clouds

January is the time of year when we look back at our previous year of work and accomplishments, and get operations underway for the new year. For Five States, 2013 was productive. We stayed busy throughout, evaluating 115 individual submittals, representing $140.2 million. Of these, only five made it across the finish line by...

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Whirlwind of Change

Looking back, I am astonished by the changes that have occurred in the development of U.S. energy supplies over the last decade. In fewer years than a kindergartner becomes a teenager, the U.S. oil and gas industry has found the keys to unlock literally billions of barrels of oil and trillions of cubic feet...

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Will the US Achieve Energy Independence?

I am frequently asked if America can, or will, ever again be energy self-sufficient. The question is more complex than it seems. For many of those who ask, the question is really about American’s ever-increasing level of oil imports. “Are we likely to develop sufficient production capacity in the US such that we no...

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