A promotional possibility for a low producible but dependable gas reservoir such producible but dependable gas reservoir such as the Ohio shale is modeled and discussed. This involves the promotion of natural gas availability as part of a planned residential community cooperative. The requirements for success are outlined. Actual performance and return is not dependent upon the examples used. Other reservoirs and other areas can be applied to the model. Exploration, completion and servicing costs are included in the price of building sites and administered through a community cooperative. This affords the contractor a short term payout and long term operation through service contracts if desired. Drilling supplies may be on site or remote from the development. Storage, modes of investment, mechanics of a cooperative and a balance sheet example complete the discussion.
Oilfield promotion has suffered recently in two ways, both of which tend to dry up investment money. First, the mistrust of the industry by investors and second, political interference. Combining investment political interference. Combining investment programs may be a solution-to free up capital programs may be a solution-to free up capital and increase domestic energy supplies by examining previously uneconomical gas reservoirs.
The model for examination is a real estate development of new high quality homesites with cooperative ownership and operation of gas supplies included in the purchase price. This affords the homeowner purchase price. This affords the homeowner with a guaranteed supply of a presently preferred energy source and the investor with preferred energy source and the investor with a choice of short term return with gas exploration investment or long term in real estate building investment.
To establish this working model a number of necessary assumptions must be made:
The natural gas situation of limited availability and/or increasing price remains significantly unchanged, i.e., little or no possibility of massive new domestic supplies and/or a significant lowering of retail price.
In the proposed area, the availability of over 100 acres at fair market price.