Genoil (GNOLF) and Re: The Electricity Crisis that Dr. Kent Moors says could bring 100,000% returns

by Alvin Bojar | May 22, 2014 12:00 pm

I’m not against 100,000% stock winners, but I am against finding my pot of gold in a uranium mine seeking to fill the needs of countless nuclear plants that are yet to be built, or perhaps even to be designed. These stock touts emerge whenever new ominous forebodings of global warming are issued. In the perspective of meaningful and lasting stock appreciation, these opportunities are still a long way off, while other equally enticing energy situations are closer at hand offering similar or better potential. One such stock, which I recently became aware of, is a small promising company with a patented technology capable or raising the API of heavy oil, and greatly reducing the sulphur content of high sulphur crude by a factor of 99%, so that it can meet the specs of sweet light crude. What this would mean in terms of stock appreciation is discussed below.
Recoverable oil reserves are estimated at 1.2 trillion barrels of oil (TBO), of which 400 billion (BBO) consists of lite or sweet oil, which is currently being depleted at the rate of 80 million barrels per day, or 29 million barrels per year. This is the oil that is refined for use as gasoline, diesel and jet fuel. The remainder of the world’s estimated reserves, or 900 BBO, exists in the form of heavy oil and high sulfur oil. Heavy oil with a low sulfur content (>1%) is mainly found in Africa, while heavy oil with a high (1% to 3.5%) sulfur content is to be found mainly in North & South America and the Middle East.
There are four grades of oil: (1) Very light oil – volatile and easily transported through pipelines. It is the type oil used for gasoline, jet fuel and kerosene. (2) Light oil – slightly more viscous, in the form of diesel, domestic fuels and marine gas. (3) Medium crude – the most highly produced crude. Low volatility. The oil involved in the highly publicized oil spills. (4) Heavy fuel oils – heavy crude, bunker oil, intermediate and heavy marine. Toxic. The sulfur content of these oils may vary from 0.5% (light) and from 0.5% to 3.5%, or more (heavy), and is responsible for much of our air pollution and is also corrosive. To summarize, light crude has an API of 31 or more, medium crude measures between 22-31 API, heavy is anything between 10-22 and extra heavy, such as bitumen and the Canadian and Venezuelan oil sands measures under 10 and has to be diluted before processing. The world’s largest reserves are considered heavy oil, which hold the huge resources for the future. Because it is a thick crude, viscous with a low API rating, it is difficult to process with conventional refining methods and therefore sells at a significantly lower price.
This brief overview brings us to Genoil (GNOLF), a small R & D company, which was spun off from a medium sized Canadian exploration and development company approximately ten to fifteen years ago. It boasts of an advanced technology for heavy oil processing called the Genoil Hydrogen Upgrader, or GHU, which employs hydrogen for the upgrading and desulfurization of heavy oil. It developed and tested the GHU on its 146 acre property in Canada, where it operates a ten barrel per day pilot plant, which the company states has been successful in greatly lowering the API of heavy oil, as well as reducing sulfur content to under 0.5%. This, in itself, would be remarkable, as the refining of heavy oil is very costly, as well as being one of the world’s major sources of air pollution due to its CO2 emissions.
As Genoil has not yet built a full scale operational facility, I felt impelled to dig deeper, because at a current price under $0.10/share, this appeared to have the trappings of what could be a true multi-multi banger, and I never hear of those too often. I will now disclose what I learned and you can make your own determination.
(1) Genoil has entered into a joint venture, Genoil Emirates, with Sheikh Sultan bin Khalifa’s SBK Corp of Abu Dhabi. The Sheikh is the eldest son of Abu Dhabi’s ruler, Khalifa Bin Zayed Al Nahyan. Abu Dhabi produces in excess of 2.5 million barrels of oil per day.
(2) Genol and O.W. Bunker of Denmark have signed an MOU for the building of an upgrader for which Bunker will supply the feed and has agreed to purchase a minimum of one million tons of low-sulfur crude per year from Genoil at a set price.
(3) Technip Stone & Webster, I am told, will be doing EPC work for the company and will warrant its technology, but I still have to find out what this refers to.
(4) On May 8, 2014, Slavo Scepanovic joined the company as Sr V-P of Engineering. Previously, for 6 years, he was 1st Deputy Director & Director Advisor of the Optima Group.
I cannot believe that these events would have occurred without a high degree of optimism and assurance with respect to Genoil’s technology on the part of engineers and executives with far more knowledge and experience regarding GHU’s effectiveness on heavy oil than I.
Genoil has 400,000,000 shs I & O and sells at a price in the three to seven cent range, giving the company a valuation of around $15-25 million. If only a portion of its potential is realized, this could be my winner of the decade. If they manage to put a full scale plant into operation within the next couple of years, there’s no doubt the line will form to the right. This potential seems far more reasonable and feasible than toying with uranium stocks in the hopes that a multi billion dollar nuclear plant will be coming on stream in the foreseeable future. At least it seems so to me.
As I am a disciple of Travis, I have not started to accumulate a position prior to disclosing this to the Gumshoe readership, but I intend to remedy this very shortly. As I learn more of what is happening with Genoil (GNOLF), the news will be disclosed here, if it’s not on the stock ticker first.

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  1. 15
    Loren Rowton
    May 22 2014, 07:41:57 pm

    I have been familiar with this stock for several years. I first became interested when Gnolf had technology to upgrade heavy oil In Situ. This would lower the viscosity of oil at the wellhead and upgrade the quality or remove impurities at different levels according to clients needs. Lower viscosity means that heavier oil would not need to be diluted to facilitate proper flow through pipelines as well as reduce the costs to process at the refinery. Since most refineries have already invested significant amounts of money in their current infrastructure i.e. Hydrocracking units, Coker units, etc. , they are not motivated to change. Even though their current methods require more time and energy to process. This makes it more expensive and more energy to process is less environmentally friendly. We have a current glut of natural gas and light oil from utilization of shale fields and fracking technology. There is substantial concern about the environmental impacts of fracking and even though there is a large supply available, the speed at which gas and oil are being extracted is concerting (I have investments in the Bakken and as much as 80% of a wells resources are recovered in the first two years) . And if we export these resources; they will be depleted at a much more staggering rate.
    My point being: all of this “huge supply of easy oil and gas” put a damper on the Genoil technology. But it will not last. I thought Genoil was ready to be another bad memory.
    But something happened: The entire shipping industry has been hit with new requirements (effective in 2015) that will require Bunker fuel (the main fuel used for propulsion for tens of thousands of vessels) to have a reduced sulfur content of less than 1%. Genoil technology can upgrade lowgrade Bunker fuel for a fraction of what refiners can. And the amount of Bunker fuel burned per day by the shipping industry is more than staggering. Even if Genoil were to get a small portion of this niche, its value will skyrocket.

    If you read this, please take a moment (more likely a couple of hours) to check into this.

    • Avatar
      Jan 13 2018, 06:09:26 am

      People better keep an eye open things are happening fast with Genoil. It’s almost like the are powers out there that don’t want Genoils tech applied/utilized. Will see it’s now 2018 and time is growing short.

  2. Avatar
    May 23 2014, 01:23:58 am

    well said. but why hasnt the genoil emirates p.ship lifted even the pinky toe since ite inception Yes its true that licences were needed but that has come and gone w/o a peep. The HYT PROJECT IN CHINA which was just continued as of yesterday has been on the table for 10-12 years so it looks like Bunker fuel is the place to be, the question is how serious are the enforcers , will it really kick in in 2015, one would expect every and all shipping companies to be clamoring for Options and yet that doesnt seem to be the fact the nly source for this news jas been Genoils news releases

    • Avatar
      May 24 2014, 05:36:33 pm

      You have a valid point regarding enforcement. The designated ECA areas seem to be geared up for enforcement and some areas are talking about even more strict regulations.
      But vessels operating outside those areas will probably try to avoid the new regulations.
      I think what will eventually happen is that monitoring will be increased at the bunkering locations as well as other means.
      And yes…the potential deal with the Chinese went by the wayside a long time ago, but the renewed interest is encouraging as is the need for cleaner bunker fuels.

  3. Avatar
    May 23 2014, 08:25:34 am

    @ JOE
    Enforcement is absolutely serious. The major shipping lines across the globe have formed an alliance to ensure that enforcement is upheld. This is because the majors will be most scrutinized since they will be in the public eye the most when it comes down to following these regulations. The alliance wants to ensure that the smaller shipping lines don’t obtain an unfair advantage for not complying with the rules coming into effect in 2015 and escalating in 2020. The alliance is called Trident. Check this link for more info.
    These rules WILL be enforced by government and corporations and this will result in GENOIL being uniquely positioned to bring all of these corporations into compliance with the new regulations.

    • 15
      Loren Rowton
      Jun 5 2014, 11:16:20 am

      The link you have provided refers only to Canada. You state that this also applies to the US.
      I would like to know where you got this information since I have no difficulties trading in the US.

      • Avatar
        Jun 23 2014, 02:11:25 pm

        I tried to place an order which got rejected with a message that trading was halted. I suppose that the following happened:

        1. Either my Canadian broker sends orders to Canadian exchange when symbol is same on US and Canadian exchanges;
        2. Or Canadian brokers are prohibited to facilitate such trades even in US exchanges if the stock is suspended in Canada.

        Sorry for confusion.

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