08.07.2008 10:58 am
Missouri’s black gold starts flowing
St. Louis Post-Dispatch
It’s not exactly a gusher, but oil is flowing from the Missouri oil find that we took note of last winter. MegaWest Energy of Calgary announced that the first sale of oil from its Missouri well, which it now calls the Marmaton River Project, took place Monday. Production “has started to ramp up has started to ramp up towards the target rate of 400 to 500 barrels per day,” MegaWest says.
But if you think any company with a new oil find is a can’t-lose investment, think again. MegaWest’s shares, traded on the OTC Bulletin Board, have fallen 70 percent this year.
(2 votes, average: 4 out of 5)
Loading ...
David Nicklaus has covered St. Louis business for more than 25 years. His column appears three days a week on the Post-Dispatch business page. 
If the Democrats succeed in enacting a “windfall profits tax” on the earnings of oil companies (over and above the existing corporate profits tax), will they also enact a “windfall loss rebate” to compensate companies such as this that will lose money they have invested in oil production if the price of oil falls? And if the price of electricity should surge, will there be a “windfall profits tax” on people who have invested in wind turbines and solar collectors supplying power to the electrical grid?
It can’t hurt us any more than we are hurting.