HOUSTON, Jan. 13, 2011 (GLOBE NEWSWIRE) -- Liberty Energy Corp. (OTCBB:LBYE) ("Liberty" or "the Company") considers a range of factors currently impacting the oil and gas industry.
Crude oil Prices
Crude oil prices are currently hovering around $95 a barrel and gasoline is at an average of $3.10 per gallon. However, due to growing global demand, oil prices are expected to climbing to at least $100 a barrel, with other analysts anticipating even higher prices in 2011.1
Former Shell Oil president John Hofmesiter suggests that current price increases are being caused by competition and growth of the emerging economies of China (whose crude oil demand is up 12% in the past year alone to 8.9 million barrels per day) and India whose demand has grown significantly in the last two years alone.2
World crude oil production has leveled off in the past 3 years in the range of 85 million barrels per day, indicating peak oil has arrived. Currently, the U.S. consumes 20 million barrels a day and produces a mere 7 million.3
The Obama administration lifted its moratorium on deep-water drilling in the Gulf of Mexico October 12, 2010, replacing it with new safety standards for operators looking to drill in water depths greater than 500 feet.
It is widely believed the moratorium was lifted prematurely with fears that federal regulators have not introduced sufficiently stringent new drilling standards. Concerns lie not only over the approval of permits before appropriate safeguards are in place, but also with the costs of these new safeguards and how these higher operating costs may result in higher fuel prices for end consumers.
Further concerns revolve around the Trans-Alaska pipeline which transports about 15% of the nation's domestically produced oil as it was shut this week for the second longest period in its history.5 The pipeline moves crude from the nation's largest oil field at a rate of about 650,000 barrels a day, but after the leak this has been reduced to around 400,000 barrels a day.6 Many believe the picture for the future of pipeline looks ominous. It opened in 1977 and at its peak in the late 1980's it was transporting around 2 million barrels a day; it is predicted this figure could continue decreasing to virtually nothing within the next 10 years.5
Eagle Ford Shale Play
The Eagle Ford shale play extends about 400 miles across South Texas in a 50-mile-wide band, from the Mexican border, below San Antonio and up into East Texas. The formation is a vast underground network of dense rock layers, discovered only recently and now thought to be one of the nation's biggest oil and gas fields. It is attracting interest and dollars from some of the world's biggest oil companies including Shell, BP, Norway's Statoil and China's CNOOC.2 In 2010 in the Eagle Ford, 1,018 drilling permits were issued through November, up more than ten-fold from the year before.7
"We believe that we are well placed with all the aspects identified. Rising demand, lack of supply, and continued production decline will lead to continued price increases. This is why we are committed to sourcing low cost, high yield onshore production opportunities that increase our ability to produce reliable domestic energy," commented Daniel Martinez-Atkinson, CFO of Liberty Energy Corp.
ABOUT LIBERTY: Liberty Energy Corp (OTCBB:LBYE) is an Independent Oil and Gas Exploration and Production Company dedicated to the sourcing and production of fuel supplies in the United States and Europe. Headquartered in Houston, Texas, the company has leases and royalties in both Texas and Bulgaria, covering several wells with extensive potential for future development. In Texas, four leases – Dahlstrom, Ratliff, and two at Lockhart Northeast – are identified as rich oil and gas sites based around numerous geological pay zones. In North-West Bulgaria, Liberty has royalty rights to a 1,000,000+ acre natural gas property (the A-Lovech exploration block), an area of high quality, low- sulphur natural gas condensate. Through this combined international reach and domestic focus, Liberty Energy is committed to the development of US fuel reserves while seeking out further opportunities for the global energy markets.
Certain statements in this press release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Liberty Energy Corp. bases these forward-looking statements on current expectations and projections about future events, based on information currently available. The forward-looking statements contained in this press release may also include statements relating to Liberty Energy Corp.'s anticipated financial performance, business prospects, new developments, strategies and similar matters. Liberty Energy Corp. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.
ON BEHALF OF THE BOARD OF DIRECTORS,
Liberty Energy Corp.
Ian Spowart, Chief Executive Officer
CONTACT: Liberty Energy Corp. Two Allen Center Suite 1600 1200 Smith Street Houston TX 77002 Tel: 713-353-4700 Fax: 713-353-4701 Email: firstname.lastname@example.org INVESTOR RELATIONS: Toll Free: 1-877-890-1650 Email: email@example.com