MACRO ECONOMIC PERSPECTIVES

The timing for this venture could not be better; the oil and gas industry is already dramatically increasing its purchases of steel parts and long-lead items for the oilfield, getting ready to “drill baby, drill”. 

The United States is facing the biggest economic shift in its history, eliminating most of the off-shoring activity of the last 70 years.  In order to meet these changes, several economists calculate that the US needs to DOUBLE its industrial capacity in the next ten years.  One of the most dynamic industrial areas in the US is Texas, particularly the Texas Triangle: Dallas, Houston and San Antonio. This area converges both traditional energy and renewable energy. 

Industrially, this region is, arguably, the best situated area for economic and industrial growth in the USA. This Texas Triangle encompasses 25MM economically active people from Dallas-Fort Worth to Houston-Galveston to San Antonio-Austin.  This region produces 12% (US$3.4 trillion) of the industrial activity (as measured by GDP) of the United States.  It concentrates roughly half of the US Mexico and Canada Agreement USMCA trade and half of the petroleum refining capacity in the USA.

The other oil related economic activities and the rest of the industries in the Texas Triangle are following suit.

Currently in the Oil & Gas marketplace as there is very little Exploration and Production funding available today. This lack of investment is the result of political pressure being applied by activist “green” shareholders and/or watchdog groups that are trolling banks, private equity groups, lenders and oil companies demanding that they not be involved in providing financing to fossil fuel projects.

Our one-stop-shop will take advantage of the prosperity generated by the long-term economic expansion in this business-friendly area and, because of the “drill baby, drill” push that the Administration is making, which will reduce the red tape involved in the permitting and processing for the industries in this region.

To recap: We will accomplish this by acquiring ownership and managing profitable operating (1) fabrication facilities and a small chain of distribution supply locations, very well placed in their sector of the market, and then complementing this entity by acquiring and operating (2) additional fabrication lines and manufacturing solutions (3) the expansion of the footprint of the distribution supply store locations and (4) by acquiring, developing and operating non-core assets of small to medium size Oil & Gas producers.

To complete the business concept  we will integrate a corporate office, which will consolidate all executive, management, procurement, estimating, accounting, and financial functions under one roof, reducing the individual overhead charges.

As stated above, the timing for this venture could not be better; the oil and gas industry is already dramatically increasing its purchases of steel parts and long-lead items for the oilfield, getting ready to “drill baby, drill”. ​