- EIA projects that crude oil prices will remain high enough to drive U.S. crude oil production to record-high levels in 2023
- The agency observed that crude oil prices have generally increased since April 2020
- Laredo has historically leased 23,739 mineral acres in the Western Williston Basin of Montana
- The company recently purchased 2,361 additional mineral acres, bringing the total Montana leased acres to 26,100
The U.S. Energy Information Agency (“EIA”) is looking for domestic crude oil production to reach record-high levels in the next two years, according to its February 2022 Short-Term Energy Outlook (https://nnw.fm/lZpir). Oil and gas exploration and production company Laredo Oil (OTC: LRDC), is in a strong position to benefit from that projected growth as it focuses on acquiring, developing and operating undervalued conventional oil and gas properties in the United States.
“In our February 2022 Short-Term Energy Outlook (‘STEO’), we forecast that crude oil prices will remain high enough to drive U.S. crude oil production to record-high levels in 2023, reaching a forecast 12.6 million barrels per day (b/d),” the EIA reported. “In the February STEO, we forecast that U.S. crude oil production will increase to 12.0 million b/d in 2022, up 760,000 b/d from 2021. We forecast that crude oil production in the United States will rise by 630,000 b/d in 2023 to average 12.6 million b/d. We expect more than 80% of that crude oil production growth to come from the Lower 48 states (L48), which does not include production from Alaska and the Federal Offshore Gulf of Mexico.”
The agency noted that legacy production, or crude oil production from existing wells, usually decreases rather quickly in tight oil formations, but the agency anticipates that production from new wells will offset these legacy production declines. In addition, EIA observed that crude oil prices have generally increased since April 2020, resulting in increased crude oil production.
Laredo is looking to contribute to increased oil production. The company’s strategy involves a focus on unlocking value where others have overlooked it, emphasizing free cash flow that allows the company to seize opportunities quickly and taking a disciplined approach by de-risking projects and exercising care in incurring expenses and allocating capital (https://nnw.fm/Ige7n).
Following this strategy, Laredo has leased 26,100 mineral acres in the Western Williston Basin of Montana; those leases were obtained at favorable prices during the most recent down cycle. Laredo continues to look for undervalued opportunities in the area. The company plans to drill the first development well at one of the first of 10 potential locations it has identified in the coming months, and if that well yields the anticipated results, the company will begin drilling additional wells in the area as soon as practical. The company believes the leased acreage has the potential to yield at least five years of development opportunities.
Based in Texas, Laredo Oil is a publicly traded oil and gas exploration and production company. Specializing in conventional and enhanced oil recovery techniques, the company is engaged in the acquisition and development of both undervalued quality conventional oil and gas properties and select mature oil fields. In addition to pursuing conventional recovery methods in target locations, Laredo Oil intends to utilize its proprietary Underground Gravity Drainage(TM) model, where conditions warrant, to profitably recover stranded oil reserves previously thought to be incapable of economic recovery.
For more information, visit the company’s website at www.Laredo-Oil.com.
NOTE TO INVESTORS: The latest news and updates relating to LRDC are available in the company’s newsroom at https://nnw.fm/LRDC
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