Oil and Gas Leases, Rights, Investments

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Welcome to the R.C. Michael Company!

We believe that we offer a unique and timely service to American investors, enabling a select few to acquire and hold potentially lucrative exclusive oil and gas drilling and production rights on State and Federal lands in producing basins in the western U.S..

Oil Supply Crunch

As everyone knows, the price of crude has skyrocketed to new levels, but it has several times before in our lifetimes, and then collapsed. What is different this time, and why is $60 - $70 oil the new permanent reality? For one thing, since the "oil shock" of the 1970's, we've burned up a whole lot of the stuff without finding commensurate replacement reserves. Many experts believe that global production will peak within this decade. New oil discoveries peaked in 1964, and have declined ever since; they have fallen increasingly short of consumption since 1981. (British Petroleum, Statistical Review of World Energy full report workbook 2004, at www.bp.com) New technologies will slow but not stop this decline; a hybrid car still has a gas tank... and there are no "hybrid" jetliners. "Unconventional" sources such as tar sands and oil shales will doubtless eventually be exploited, but they are energy-intensive and environmentally unfriendly to develop. Stand on an overpass above a busy freeway in an American urban area and gaze upon the endless roaring river of steel beneath you; now, imagine this scene in every big city in this vast country, 24/7, every day, for decades... it's amazing that the production system has been able to keep up with this demand so far.

Global Economics

There's nothing new about wars and the "clash of civilizations"; this was the main cause of the first oil shock and, sadly, is as old as humanity itself. What IS the new permanent factor in the oil supply equation would have been unthinkable thirty years ago... the emergence of China and India, with their over two billion people, from primitive third-world "oxcart" economies to the brink of modern technological consumer societies. If only one in ten Chinese ends up owning a car, that is over 100 MILLION new thirsty fuel tanks in the world. (Can the global environment sustain this, let alone the world's oil supply?) Already, the Chinese are aggressively muscling into oil and other raw material markets; they are reportedly courting Hugo Chavez of Venezuela, no friend of America and yet one of the biggest oil exporters to the U.S.