Facts About Trendwell

Trendwell Oil Corporation was formed in 1978 during a period of history when nations that consumed large quantities of petroleum based products lacked adequate supply. Until 1985, our company focused on developing and drilling oil prospects in order to help find a sufficient supply of this important natural resource for American customers. In 1986, Saudi Arabia decided to flood the world oil markets with lower priced oil in order to gain market share. This resulted in unstable prices for U.S. independent oil producers. Most redirected their efforts toward finding new deposits of cleaner burning natural gas. This shift toward securing domestic natural gas supplies helped meet the growing demand for energy and made America less dependent on foreign oil.

Trendwell Oil Corporation became Trendwell Energy Corporation in 1986 to reflect our ongoing commitment to finding and developing a supply of energy for American consumers. We explore for both oil and natural gas and pride ourselves in being an environmentally sensitive company. Trendwell operates several hundred wells and is actively involved in exploration and development projects around the country.

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Facts About Michigan's Oil Industry

Michigan is one of the nation's major sources of oil and natural gas. In fact, oil and gas is a $2 billion a year industry, making Michigan the 17th largest of 33 oil-producing states in the country.

From the time the first commercial oil field was discovered in Saginaw during the summer of 1925, Michigan has produced more than a billion barrels of crude oil and more than four trillion cubic feet (TCF) of natural gas.

With its natural gas storage capacity and vast pipeline network, Michigan is an energy storehouse and supply hub for much of the Northeast and the Midwest states. Michigan is also the sixth largest energy-consuming state in the nation, using oil and gas for residential and commercial heating and cooling, manufacturing, transportation fueling, and generating electricity for industry and private use.

· Nearly 50% of the US population and over 50% of the US manufacturing capacity is located within 500 miles of Detroit Michigan. Local energy production and supply is vital to the areaís security and prosperity.

· Oil and gas royalty revenues from Michigan State owned minerals fund the Natural Resources Trust Fund that was set up in order to purchase more recreational property for the State of Michigan to manage for public enjoyment. Over 500 million dollars have been paid in the form of royalties from producing oil and gas well operators to the state for this purpose since its legal inception in 1976.

· The first exploration well drilled for oil in the world was drilled 13’ deep into Michigan Basin rocks (Dundee Formation) that outcrop near the surface at Oil Springs Ontario Canada in 1858 before the famous Col. Edward Drake well was drilled in Pennsylvania.

· Many exploratory wells were drilled in southeast Michigan for local use before the first commercial field was discovered in 1925 near Saginaw Michigan.

· There have been over 47,000 permitted exploration wells drilled in Michigan since 1927 composed of about 14,000 oil wells, 13,000 natural gas wells, and 20,000 dry holes. Presently, there are about 14,000 active wells in the state producing from depths of a few hundred feet to 12,000’.

· Like an aerosol can full of gas that is being used up, all oil and gas wells eventually deplete to noncommercial levels of production. The time this takes depends on conditions such as producible reserves, productivity volumes, commodity price, and operating costs. All commercial wells are only temporary on the landscape. Some last for months and some last for years, but they are all temporary.

· A dry hole or a depleted well is plugged with cement and the steel casing is left in the hole for additional protection of the shallow fresh water aquifer zones.

· From only 2% of the land area in Michigan, 1.3 billion barrels of oil and 5 trillion cubic feet of natural gas has been produced from 64 counties in the lower peninsula of the state of Michigan USA.

· About 10,000 jobs are directly related to the oil and gas exploration, production, refining, transportation, and services segments of the industry within the state of Michigan USA.

· The total value of oil and gas production annually is about 850 million dollars which in turn, results in an additional 1.1 billion dollars in business activity in Michigan annually making the energy industry’s total contribution to the Michigan economy about 2 billion dollars annually.

· The energy industry pays 14,000 private mineral owners about 80 million dollars for royalties from oil and gas production each year.

· The industry has paid the State of Michigan nearly 1 billion dollars for royalties, rentals, and lease bonuses since 1927.

· The energy industry pays over 33 million dollars for severance taxes for fees to the State of Michigan each year. In addition, it pays each year about 7 million dollars for fees to the state to help finance the Michigan Department of Environment Quality which is responsible for regulatory matters.

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Facts About World Oil

· The world oilfield discoveries hit their pinnacle in the 1960's.

· USA crude oil production topped out in the 1970's.

· The USA now imports 60% of itís oil, mostly from Saudi Arabia, Venezuela, and Mexico.

· Two thirds of the remaining world oil is contained in only 5 Persian Gulf countries.

· There are 1,400 billion barrels of proven oil reserves remaining worldwide.

· Saudi Arabia alone has more proved reserves than all other non-OPEC countries together.

· The world consumes about 26 billion barrels of oil each year.

· The world finds about 7 billion barrels of oil each year.

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