"We believe that the technology will open up significant opportunities for small and medium size producers for whom upgrading was previously not an option, but large producers also value the flexibility and scalability provided by our technology," Agolli explained.
Heavy oil and bitumen are terms used interchangeably to describe oil that is much thicker (higher viscosity) than medium or light oils and is solid or near-solid at room temperature. Heavy oil typically contains significant amounts of asphalt and other impurities including heavy metals.
Because of these qualities, heavy oil is more expensive to recover, handle and transport than lighter grade crude. While it costs more to produce, its value in the marketplace is reduced in comparison to lighter grade crude oils, because it is also requires more refinery processing to produce high quality light distillates.
According to a recent report by Chevron entitled "Heavy Oil, Unlocking the Potential," heavy oil comprises 50 percent of known oil reserves (roughly 8 trillion barrels) but represents just one in ten barrels of current production. New global investment could double this output by 2025.
The Energy and Information Administration (EIA) forecasts future heavy oil production to increase by 200 percent from 2006 to 2030. Of the world's total oil reserves, an estimated 53 percent are in the form of heavy oil or bitumen.
Capital spending for heavy oil related infrastructure has continued to grow consistent with the dramatic gains in heavy oil production. As we continue to see this capital spending, the Company believes that Petrosonic Sonoprocess system has the opportunity to become one of the major de-asphalting and upgrading processes for heavy oil producers, pipeline and rail transporters and terminal owners.
About Petrosonic Energy, Inc.
Petrosonic Energy, Inc. was established to deliver innovative technologies to the energy sector. Our current primary focus is to provide technologies that upgrade heavy oil economically and in an environmental friendly manner. Our patented Sonoprocess uses clean tech sonic energy to de-asphalt heavy oil at much smaller scale and lower capital costs than conventional Upgraders and without use of water or release of emissions in the atmosphere.
This news release contains "forward-looking statements" which are not purely historical and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
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