Industry of HEI Partners
Oil & Natural Gas Development
America’s energy industry is critical to a strong and vibrant economy. In fact, our energy future depends on companies like HEI Partners to safely and reliably help provide the oil and natural gas our country needs to grow this economy, create quality jobs, and enhance energy security by decreasing our foreign dependence. Our energy industry provides an economic impact of $1 trillion annually and 9.2 million jobs.
The potential for future discoveries and production in oil and natural gas is very optimistic. In 1980, official estimates of proved oil reserves in this country were roughly 30 billion barrels. Yet over the past 30 years we produced 77 billion barrels in this country – that’s 2 ½ times the proved reserves we thought we had 30 years ago. We can be thankful to new and continuing developments in exploration and production technology. We have every reason to believe that today’s estimates of reserves will only be a fraction of what will be produced and delivered in the decades to come.
We have, right here in the United States, massive quantities of the most affordable energy resources right beneath our feet. Our access is really only limited by the governmental policies we adopt.
The United States has 1.4 trillion barrels of technically recoverable oil from a total of more than 3.7 trillion barrels of in-place resources. The richest most concentrated deposits of oil shale in the United States are found right here in HEI’s own back yard, in the Green River Formation of Colorado, Utah, and Wyoming.
All of North America is blessed with enough energy supplies to promote and sustain economic growth for many generations to come. These massive reserves were detailed to Congress when the Congressional Research Service of the Library of Congress released a report showing the United States combined recoverable oil, natural gas, and coal endowment is the largest on earth.
HEI believes the United States energy future looks bright, and we are proud to play a small part in safely and reliably developing these resources.
Mining of precious and base metals
The earth’s 118 known elements appear on the periodic table. Among these elements are base metals (iron, nickel, lead, copper, and zinc), precious metals (gold, silver, platinum, iridium, rhodium, and palladium) and rare-earth metals (scandium, yttrium, and lanthanide elements). These all provide investment opportunities in valuable assets across a variety of investment classes. Mined metals and minerals (excluding oil and gas) have an annual value of approximately $350 billion dollars, split roughly equally, between coal, metals and aggregates/industrial minerals.
Worldwide metal markets are expected to be fueled in the foreseeable future, by the increased metal consumption in developing countries, most notably, India and China. Precious metals are genuine insurance in response to the continued global financial uncertainty and potential political/military upheaval. The weak prospects for the United States dollar due to its increased debt, and their Quantitative Easing approach contribute to more uncertainty. Precious metals offer unique inflationary protection, as they have real value, they carry no credit risk and they themselves cannot be inflated (you can’t print more of them). HEI sees more investors turning to precious metals as they become less confident in paper assets and money.
There is an ever decreasing availability for quality concessions around the world and that is particularly true in South America. HEI’s unique mining relationships give them access to more than 50 high grade concessions in Peru, Chile, and Mexico.
The mining and business friendly environment in these countries has spurred a huge increase in foreign investment in mining in these countries. Newmont Mining is putting $2.5 billion dollars in Peru alone this year, and all the big mining companies have and continue to be invested in Chile. Global mining merger and acquisition value was up 43% in 2011 to $162.4 billion dollars. And those transactions in excess of $1 billion dollars accounted for two thirds of that value. HEI expects another record year as the large mining companies look for quality assets to buy, especially in proven mining regions worldwide.
HEI targets advanced gold, silver, copper, and base metal early stage projects in premier properties in the best mining regions of the world. HEI Partners sees opportunity for large discoveries and a high level of leverage to elevated metal prices.