All of us like to start the year hoping for the best but also planning for what’s realistic. We at Allied Resource Partners always do this so we can get the best results for our Partners and ourselves. So, let’s categorize the realities we that we see for those climates that will impact you and me and our company.
Look beyond the rhetoric of headline news. Our country is the best place to live! Our pragmatic and optimistic people are using the best pieces of diversity and respect to more ahead.
- We expect that Covid-19 vaccines will go a long way toward repairing the damage done by the virus to America’s healthcare system and economy. The government and private enterprise learned a lot through their collaborative efforts regarding medical supply chains and virus R&D. Our nation is better equipped to handle future pandemics, and this should buoy public confidence. People should return to “more normal” lifestyles although some of the more useful aspects of the practices (remote working, social distancing, online learning and Internet shopping) might remain. Our economy should grow faster again as people come out of “shelter-in-place.”
- The recent election demonstrated how strong America’s democratic system is. Americans and government managed to pull together and sort out winners and losers without having riots in the streets like there were in a couple of other countries. We expect a less combative and more cooperative climate in Washington.
A Chinese proverb says “May you live in interesting times.” How true today! Especially in an Internet-linked world.
- We expect the rest of the World to follow America’s lead as people return to more normal behavior. The world has learned healthcare lessons from Covid-19 and is better prepared for the next time.
- The new DC Administration will cooperate better with the international community in the important areas of Trade and Climate Change, but it is hoped Washington remembers that keeping America “number one” for energy independence and technology is a fount of perpetual strength. And “number one” is best achieved via win-win scenarios for us and our partners.
- Russia and the Middle East will continue pushing for higher oil prices, which they need to support their political agendas. China will continue to bolster its raw materials supply lines, for which fossil fuels are critical.
Energy powers everything: Life, Liberty and the Pursuit of Happiness. And laws of supply and demand determine what forms of energy will be used.
- The major oil companies are writing down oil and gas assets as they redirect long-term strategies. Green and Renewable Energy is becoming an ostensible cornerstone for British Petroleum (BP).
- Countries are demanding more efficient gasoline-powered cars and better electric vehicles. (Japan recently said it would ban conventional cars by the mid-2030s.) People are becoming more conservation-and-recycle-minded.
- But everyone agrees that conventional fossil fuels will continue playing a major role during the transition to a “New Energy Economy,” whose outline is still shadowy. All this talk about sacrificing and cutting back and conserving is usually full of fiction and flawed on facts. People are unwilling to live in the Middle Ages.
Allied Resource Partners:
We know that we operate in a small part of the oil and gas market, the domestic onshore segment that the major oil companies are shifting out of. But that means we can make our oil and gas projects a big piece of our financial success and wellbeing.
We are confident that our 2021 strategy will pay off for our partners and ourselves. Let’s state it again:
- Keep funding and drilling on the leases we already own.
- Keep looking for additional leases that we can pick up while the competition is running for cover.
- Keep improving the way we run our business so we make money for our partners and ourselves while strengthening our business network among partners, vendors, and consultants alike.
We’ve done this since I started the company, and we will continue to watch the current climate to make sure we are still going the right way. We take pride in being quicker and more proactive than any other oil and gas independent and believe our 2021 results will continue sending revenue to our Partners as well as to ourselves. We always put our own money in our projects.
Please contact us if you would like to hear more about what we have in mind for 2021.
President, Allied Resource Partners