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The 6 Hottest Energy Tech Stocks For 2021

Two of the hottest sectors in the ESG revolution right now are hydrogen and absolutely anything that ties into the $5 trillion global transportation industry.

Investors are piling into hydrogen – a potential solution for a clean energy future – and it’s now predicted to become an $11-trillion marketplace by 2050.

It simultaneously compliments and competes with the explosively growing EV sector, where Tesla (NASDAQ:TSLA) is predicted to be on track to become a $1-trillion company, or even $2 trillion, by some estimations, up from its current $400 billion.

The profound transportation revolution that’s unfolding at the moment has so many verticals, it’s dizzying.

From a mad scramble to get out more vehicles and steal market share, to battery battles, the race for the best charging solution, carbon-offset ride-sharing and landmark EV car subscription services…. a lot is at stake floating around this huge space.

Click here to read the full article.

Source: Oil Price

1031 Exchange Warehouses

How to 1031 Exchange Warehouses into Mineral Rights & Royalties

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All across the country, warehouses lie on the outskirts of towns, cities, and rural areas. Warehouses are extremely functional for storing materials for companies, artists, communities, emergency materials, and so much more. Essentially, if something needs to be stored, there is a warehouse somewhere waiting for it.

Knowing this, many developers and investors choose to buy, build, and sell warehouses as high priced pieces of land and property. Selling a warehouse anywhere in the world often comes with a huge capital gain, and therefore many taxes.

With a 1031 exchange, capital gains taxes can be avoided when selling warehouses and purchasing another property. Today, mineral rights and royalties can be purchased after the sale of a warehouse using a 1031 exchange. With this in mind, capital gains taxes are avoided, and a new potential income stream is born.
In this article, we will detail the steps to take when selling a warehouse, and using a 1031 exchange to secure mineral rights and royalties.

How to Sell A Warehouse

If you google “how to sell a warehouse,” unfortunately, most of the results are designed to help people trying to sell a warehouse in Grand Theft Auto 5. Digging a little deeper, it is actually easier to sell a warehouse than you might imagine.

Although the target market is a bit different, selling a warehouse is very similar to selling any other property. There are many online marketplaces designed specifically for property sales, many of which have filters for those looking specifically for warehouse space.

Determining the Value of A Warehouse

Whereas many warehouse owners lease sections of their space to multiple owners, the outright sale of a warehouse usually comes at a hefty sum. With this in mind, a warehouse is essentially the sum of all its physical and fiscal parts.

The value of a warehouse is determined by:

  • Warehouse Size
  • Warehouse Conditions
  • Property Size and Conditions
  • Access (Driveways, Garages, etc)
  • Current Tenants (if applicable)
  • Warehouse Type (Designed for cars, shipping, etc.)
  • And more
  • Thankfully, most warehouse properties across the country have publically available records of their value. Even if you are unable to see a property’s history for yourself, there is always the option to match the price value of your warehouse with similar properties in your area.

Taxes Paid on the Selling Warehouses

Before you cash that check, remember that there are considerable taxes to be paid after selling a warehouse. As the gross payout increases, so does the amount of money that you are equally required to pay local and national governments.

Depending on location, the following are usually paid on the sale of a warehouse:

  • Federal Income Taxes
  • Capital Gains Taxes (Long or Short Term)
  • Local Sales Taxes
  • State Taxes
  • Depreciation Recapture Taxes
  • And More

With a large price tag, capital gains taxes can be expected. However, as we mentioned above, a 1031 exchange can be used to avoid capital gains taxes on the sale of a warehouse.

Selling Warehouses with a 1031 Exchange

With a 1031 exchange, taxpayers can “trade-up” warehouses for a new property of equal or greater value in order to completely eliminate capital gains taxes. Deadlines must be met and paperwork must be processed, so we highly recommended working with a 1031 exchange intermediary to ensure a successful amendment to your taxes.

Warehouse Like-Kind Properties

Under the gaze of the IRS, most properties can be considered “like-kind” to warehouses. In a 1031 exchange, taxpayers can purchase any of the following after the sale of a warehouse for an elimination of capital gains taxes:

  • Other Commercial Buildings
  • Mineral Rights and Royalties
  • Homes and Apartment Buildings
  • Strip Malls and Stores
  • Trailer Parks
  • Golf Courses
  • And more

Warehouses 1031 Exchange Timeline

After you sell a warehouse, you are not given a whole lot of time to roll around in your money if you’d like to use a 1031 exchange. The IRS mandates that at least one reasonable property must be identified for purchase within 45 days of the sale.

Of course, this first property does not necessarily have to be the one used in the exchange. Up to 3 properties can be identified regardless of value and one must be purchased within 180 days of the sale for the 1031 exchange to be valid. With this in mind, it is always advised to have a rough idea of what you’ll be reinvesting in before the sale of your warehouse is finalized.

Why Purchase Mineral Rights and Royalties?

Mineral rights and royalties are usually not the first property that comes to mind when using a 1031 exchange in the sale of a warehouse. However, in the United States, mineral rights and royalties can be an extremely valuable part of any investment portfolio.

If you’re not familiar here’s how it works:

  • The acquisition of mineral rights allows you to own all or a portion of the subsurface of a property.
  • The land is leased to an oil and gas company that extracts and sells the land’s natural resources.
  • You receive mineral royalty payments as a fixed percentage of the sales designated by your mineral rights ownership.

How to Maximize Your 1031 Exchange with Mineral Rights

If you are planning to use an intermediary with your 1031 exchange, you have the opportunity to work with a specialist in any industry you choose to reinvest in. For mineral rights and royalties, industry jargon, complicated contracts, and lack of transparency can cause headaches for first-time investors. With this in mind, working with a specialist is always recommended.

Conclusion

Whether it was built to be sold or has already served its purpose, selling a warehouse is a big deal for property owners. With today’s laws and opportunities, using a 1031 exchange to purchase mineral rights after the sale of a warehouse is a great way to intelligently reinvest your income to avoid taxes and maximize ROI.

If you have further questions related to 1031 exchange warehouses,

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Oil Prices Rise On Election Day

Oil prices jumped early on Tuesday, with Brent back above the $40 a barrel mark, supported by a rally in financial markets and a weaker U.S. dollar on Election Day.

As of 9:45 a.m. EST on Tuesday, WTI Crude was up 3.53 percent at $38.13 and Brent Crude was rallying 3.08 percent to $40.17, returning to above $40 for the first time in a week.

On Monday, oil prices dropped in early trading as more European countries announced lockdowns, but oil closed higher after the U.S. financial markets rebounded later on Monday.

On Tuesday, oil prices rallied early on U.S. Election Day as equity markets around the world and in the U.S. also rose, with traders bracing for the outcome of the election.

Commenting on the move in oil prices early on Tuesday, Tamas Varga with oil brokerage PVM told Reuters:

“The jump has borne all the hallmarks of a massive, logical and even inevitable short-covering prior to the U.S. presidential elections.”

According to the analyst, Tuesday’s oil rally is exclusively due to the U.S. election, not a recovery from the slump in oil prices last week.

Click here to read the full article.

Source: Oil Price

jp morgan

The Next Oil & Gas Battleground For Supermajors

Chevron’s acquisition of Noble Energy launched an ongoing M&A frenzy in the U.S. shale patch as companies look to consolidate to cut costs while adding immediately cash-flow-positive resources to their portfolios. For Chevron, the US$5-billion all-stock deal to take over Noble Energy was not only about adding acreage in the DJ and Permian basins.

Through the transaction, the U.S. supermajor is gaining more exposure to natural gas assets in the Eastern Mediterranean, including a large stake in Israel’s biggest gas field, which started production in December 2019.

The already producing Leviathan gas field, the biggest energy project in Israel ever, is diversifying Chevron’s portfolio with more natural gas resources and a position in the eastern Mediterranean very close to the Middle East and European gas markets.

The timing of the U.S. supermajor’s bet on natural gas in the Eastern Mediterranean coincides with expectations that gas will play a major role in supporting the growing share of renewables in Europe amid the European Union’s (EU) push to bet heavily on renewable energy sources to reach carbon neutrality by 2050 under the European Green Deal.

Click here to read the full article.

Source: Oil Price

Selling Mineral Rights in Texas

Saudi Energy Minister: The Worst Is Over For Oil Markets

The worst of the oil market is behind us, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said on Monday at CERAWeek’s India Energy Forum.

“We are still vigilant. I think there is a big shift all together in terms of where we are today and where we were in April and May,” bin Salman added.

But it is unclear what part of the worst is in the rearview.

If the Energy Minister is referring to oil demand, the largest importer of crude oil—China—is expected to slow its imports after the oil-thirsty nation bought extra crude over the last few months to take advantage of the ultra-low prices in the market. So much so had China taken extra crude, it created a backlog in customs, which is now clearing up—a sign that it is slowing.

This is to be expected now that oil prices have rebounded to nearly double what they were in April.

Click here is read the full article.

Source: Oil Price

1031 exchange Biden

1031 Exchange Biden: Effects on U.S. Oil and Mineral Rights

Dan Doyle speaking: To talk about a Biden-Harris administration let’s first talk about the Obama-Eric Holder/Loretta Lynch administration. Back in 2015 and 2016, Holder and Lynch were President Obama’s Attorney Generals. A frack company was beset with an IRS audit, an International Fuel Tax (“IFTA”) audit.

In addition to that, there has been a Department of Labor investigation. Let’s talk more about the 1031 Exchange Biden effect on U.S Oil and Mineral Rights in this article.

IRS Audits

Without exclusion, I undergo personally an audit by the IRS. Fortunately, I and my company gain clearance from the IRS audit without penalty (other than paying our accountant). The Department of Labor audit got us for something less than $250, based on some arcane back of the book calculation on arbitrarily given bonuses. But the IFTA audit did some damage with a $40,000 paperwork-related fine even though all our taxes were paid at the pump. All three agencies and all four audits were federal, and all came at roughly the same time.

When I asked the Department of Labor attorney how she even found our little basement office, she kept mum. There was no point in her answering—we both knew why she was there. Her 18,000-employee strong department, like the IRS and IFTA, had been weaponized to undermine the oil and gas industry. AGs Holder and Lynch, likely with President Obama’s blessing, were picking and choosing and I and they chose my industry.

On March 1st, 2016, coming home from work, I tell my wife my worry about Aubrey McClendon. He is the founder of Chesapeake Energy and American Energy Partners. The following morning, there was an arraignment in Oklahoma for violations of the Sherman Anti-Trust Act.

Click here to read the full article and learn more about 1031 exchange Biden presidency’s effect on U.S oil and Mineral rights.

Source: Oil Price / Photo: Wikipedia Creative Commons

If you have further questions, feel free to reach out to us here.

Saudi Arabia Oil

IMF Sees Oil Prices At $40-50 Next Year

There is no expectation that oil prices will rise much next year.  It will stay in the $40-50 a barrel range. This will put additional pressure on the oil exporters in the Middle East, the International Monetary Fund (IMF). This was a report on Monday in its update on the Regional Economic Outlook for the Middle East and Central Asia.

Gross domestic product in the region is will drop by 4.1 percent this year. There is a downward revision of 1.3 percentage points in comparison with IMF’s forecast in April 2020. There is a expectation that the economies of the oil exporters in the Middle East and North Africa to suffer more and shrink by 6.6 percent this year, according to the IMF.

The six countries in the Gulf Cooperation Council (GCC)—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE)—will see their economies slump by 6.0 percent in 2020, before rising by 2.3 percent in 2021.

In Q2, the economy of Saudi Arabia shrank by 7 percent. This is with the unemployment rate hitting a record high as the combined effect of the oil price crash. The coronavirus pandemic hit the world’s largest oil exporter hard.

Click here to read the full article.

Source: Oil Price

If you have further questions about IMF or other related topics, feel free to reach out to us today. 

Morgan Stanley

Morgan Stanley Sees Oil Prices Struggling To Break Above $50

Oil prices will struggle to rise above $50 a barrel because of the technological shift in U.S. shale that has unlocked more production in recent years, and because of the growing importance of environmental considerations in investing, Morgan Stanley says.

According to the investment bank’s most recent market insight on crude oil, the market moved from a ‘peak oil supply’ narrative back in 2008 to concerns about peak demand in 2020.

“How we got here is a story of technology and environmental advocacy, and one that has material cross-asset implications,” Andrew Sheets, Chief Cross-Asset Strategist for Morgan Stanley, said.

Technology, especially fracking, allowed U.S. producers to dramatically raise oil production in recent years, while investments in green energy and technology are already becoming a major investment theme, according to M.Stanley.

Expectations that oil demand may be closer than thought before the pandemic and the environmental policies have significant implications on the oil market, the investment bank said.

“Coupled with the near-term challenges our analysts see for the oil market, we think prices will really struggle to move above $50/barrel, as levels above this will encourage producers to hedge much more aggressively at these prices. As such, oil prices should lag other ‘reflationary’ assets in this cycle that we like a lot more,” Morgan Stanley’s Sheets said.

The Wall Street bank is more bullish on natural gas producers than it is on oil producers because of more favorable fundamentals in the gas markets.

Click here to read the full article.

If you have further questions related to this topic, feel free to reach out to us here.

Source: Oil Price

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U.S. energy companies begin restoring oil and gas output after hurricane

U.S. energy companies were returning workers and restarting operations at storm-swept production facilities along the U.S. Gulf Coast on Sunday, two days after Hurricane Delta barreled through the area.

Chevron Corp, Royal Dutch Shell Plc and BHP Group all said workers were headed back to production platforms in the U.S.-regulated northern Gulf of Mexico.

BHP expects to complete the return of workers to its Shenzi and Neptune production platforms on Sunday, spokeswoman Judy Dane said, adding that resuming flows will depend on how quickly pipelines return to service.

It can take several days after a storm passes for energy producers to evaluate facilities for damage, return workers and restore offshore production. The companies that operate oil and gas pipelines and process the offshore output also shut ahead of the storm.

Click here to read the full article.

Source: Reuters

oil industry

Natural Gas Offers Lifeline For Distressed Gulf Oil Giants

Their budgets just don’t add up anymore. That’s why natural gas offers the lifeline of distressed gulf oil giants.  Oil-rich Arab nations are in the throes of a deep economic crisis and facing gaping holes in their finances. Saudi Arabia needs the price of Brent crude to rise to $76 dollars a barrel while UAE needs it to hit $69, Bahrain $96, and Oman $87 to balance their books. Save for tiny Qatar, no Arab oil producer can balance its books at the current price of $40/barrel. GCC nations are now facing huge fiscal deficits, with Kuwait’s deficit of ~40% of GDP the highest in the world.

To make matters worse, once free-flowing credit lines have started to shut down for some. A good case in point is Oman, which is struggling to borrow after credit-rating agencies listed its debt as junk. Jordan had to plead to receive a $2.5bn aid package from the Gulf, only half of what it got eight years ago. Meanwhile, no one from the Gulf appears willing to bail out cash-strapped Egypt or Lebanon.

In short, the countries are being forced to take pretty drastic steps.

Click here to read the full article.

If you have further questions on what Natural Gas Offers, feel free to reach out to us here. 

Source: Oil Price