Economics – the Ziyen Advantage
The economic synergy of old energy and new energy
Over the next 10 years, Ziyen Energy plans to use renewable energy sources to offset operational oil production electricity costs and reduce taxable income.
- Old energy acquisition: Ziyen will acquire traditional mineral and land leases on land already producing oil
- Old energy output made optimally efficient: Ziyen will then maximize output and reduce cost of production through retrofits and upgrades to outdated oil well equipment
- New energy buildout to create tax credit offsets to oil production: Ziyen will simultaneously build renewable energy production, creating IRC 48 30% tax credits to offset oil revenue taxes
- New energy worker training for old energy local workers: Ziyen’s highly skilled and local oil workers will be trained to build and maintain solar and wind energy projects, thereby providing the on-the-job training necessary to transition from an oil-only skillset to include renewable energy skillsets; thereby ensuring long-term job security.
What is the IRC 48 Renewable Tax Credit?
- Section 48 of the Internal Revenue Code provides a tax credit designed to incentivize companies to invest in renewable energy projects, which might otherwise be cost prohibitive
- The tax credit is integral to America’s successful transition to a clean energy economy.
- The Ziyen Advantage model of investing in renewable energy to reduce oil production costs, with the goal to replace it with a long-term revenue stream for the landowners in the Midwest is unique to the industry
- Ziyen Energy will follow a model of making a renewable energy investment in itself already being used by progressive companies such as Microsoft, Apple and Walmart
Ziyen Energy model ready to disrupt the US domestic oil industry
The traditional oil and gas model can be dramatically improved
A new, socially responsible yet competitive Oil and Renewable Energy company
Ziyen Advantage solar and small wind driving down oil costs
The cost of electricity in oil production
The oil pump jack is a workhorse used to pull oil out of the ground
- Once in operation the major cost (outside unplanned maintenance) is the cost of electricity to power the motors
- Drilling deeper means the extraction of oil requires more power
- For oil operators, the oil prices have fluctuated but their electric bills have not
- When each oil well runs dry, Ziyen Energy will have a fully paid alternative energy source ready to feed the grid
Ziyen Advantage ensures we are well positioned vs competition
- A key competitor for Ziyen Inc. to operate in the Midwest is Woolsey Operating Company, LLC
- Current turnover in excess of $500 million
- Operates approximately 400 wells.
- Already a successful company operating in the Illinois Basin and Midwest
- Ziyen Energy will target subcontracting work with local companies to increase supplier diversity
- Gains access to a broader base of competitive suppliers who will provide solutions to the problems faced in the Illinois Basin while streamlining costs
Ziyen Energy to launch Ziyen Advantage to ensure cheaper production costs
- Target lower operating and overhead costs
- Utilizing the Ziyen Energy technical team—having operated all across the world providing technical solutions to the biggest operators in the world—ensures our in-house technological capability is better than any medium-sized domestic operator in the Basin