Warren Buffet says...The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage. - Warren Buffet
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Durability
-permanence by virtue of the power to resist stress or force; "they advertised the durability of their products"
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Would anyone care to add to the list of competitive advantages below, so perhaps we can gain more insight into the durability of this advantage?
1. 6,000,000 acres, or 24,000 km of land. The license agreement outlines a five-year exploration period for heavy oil with a subsequent thirty-year exploitation term. Property situated in one of the world's largest oil areas.
2. All-Star management team. Key players:
Richard Wadsworth.
Strategic direction with experience to boot. Mr. Wadsworth has more than 18 years of successful experience in developing heavy oil projects. He has been involved in various projects where there was little production, poor infrastructure or markets for heavy oil, growing them into significant assets through his vision and operational strengths. He was Co-Founder, President and COO of Bankers Petroleum Ltd. (“Bankers”), an oil and gas exploration, development and production company listed on the TSX & AIM, from its inception in 2004 until August 2008. During this period, he led Bankers in re-developing its heavy oilfield, building a comprehensive team, the necessary infrastructure and external relationships resulting in reserves growing to over 150 million barrels and production from 500 bopd to over 6,000 bopd.
Mr. Wadsworth previously led and managed a joint venture company for the initial exploitation of the current Bankers oilfield in Albania on behalf of Premier Oil Plc and its three international E&P partners. Previously, he held various roles within Koch Petroleum Canada over 9 years mainly in the heavy oil sector. Mr. Wadsworth is also a Director for Gallic Energy Ltd., a junior public oil & gas company with international assets. Mr. Wadsworth holds a Chemical Engineering degree from the University of Calgary, and is a registered Professional Engineer with APEGGA.
Nasser Bin Jarallah. Mr. Bin Jarallah is an established business leader in the Middle East. He is the CEO and Vice President of the Bin Jarallah Group of Companies in Saudi Arabia. The Jarallah Group was founded in 1976 and employs over 8,000 people across Saudi Arabia in multiple sectors, including asphalt, oil and gas, petrochemicals and construction. Mr. Bin Jarallah has presided over the growth of the group. Among other projects, the group is building a major new seamless pipe mill at the Jubail Industrial City. The 600,000-ton per year plant is a joint venture with steel giant ArcelorMittal and will address a shortage in the region of high-end line pipes and other products for the oil and gas industry.
Hmm... pipelines go well with oil from what I know.
Hamad Al Shamsi.
Mr. Al Shamsi is a high-ranking diplomat within the UAE with various titles and responsibilities with significant portfolios in the Middle East. Mr. Al Shamsi also serves on several private company boards and has been a former diplomat throughout the Middle East. Business is all politics... and in Iraq, it's good to have a diplomat on your side.
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If we can summarize this and make a list of top 10 durabilities (point-form), I think it will only benefit the board...
Green, would you care to maintain the list with me as people chip in?
-Millionvester