January 27, 2022

Victim of Oil Stocks Crashing? Broker Recommend Bad Oil Stocks?

Oil and Gas Loss Recovery Lawyers

Oil Investments are back in style and possibly setting up for another crash

Oil and gas sponsored drilling programs raised almost $300 million dollars in 2020. New drilling projects are taking place across various geological basins from places like the Permian, eagle ford, shale, Illinois basins. The main sponsors of these oil drilling programs are companies like Mewbourne, MDS, APX, STL, U.S. Energy, Waveland, Resource Royalty, Montego Minerals, and JHO to name a few. According to a recent white paper put out by due diligence firm Mick & Associates here is how much each drilling program raised in 2020:

  1. Mewbourne – $55.31 million
  2. MDS - $60 million
  3. APX - $12 million
  4. STL - $17.3 million
  5. S. Energy - $64 million
  6. Waveland - $22 million
  7. Resource Royalty - $5.373 million
  8. Montego Minerals - $12.5 million
  9. JHO - $4.35 million

Oil drilling is inherently speculative and many times these products are sold to senior citizens looking to generate a stable long term income to supplement their retirement income. Soreide Law Group files lawsuits through the Financial Industry Regulatory Authority or “FINRA” against brokerage firms that over concentrate customers into risky investments or sell high risk investments and downplay the risks. Soreide Law has filed dozens of lawsuits against many brokerage firms who sold these programs to their customers after the 2015 oil crash and oil may be setting itself up for another significant draw down.

Over concentrated positions in oil investments are totally unsuitable as stable long term income investments. Oil is historically extremely volatile and crashes every decade going back to the 1970’s. The chart below is a chart of the West Texas Intermediate crude price per barrel back to 1946.

Recent Posts

March 28, 2024
Al Lovelace In Investor Disputes Over Annuity Misrepresentation

Soreide Law Group is investigating potential investor claims of sales practice violations possibly committed by securities broker Al Stephen Lovelace [CRD: 2393766, Rutherfordton, North Carolina], given the disclosures on FINRA BrokerCheck. Evidently, Lovelace has worked for Equitable Advisors LLC since December 27, 2016, and worked previously at AXA Advisors LLC from October 2, 2008, to […]

March 28, 2024
KAREN CHUNG of WESTERN INTERNATIONAL

Soreide Law Group is conducting an investigation into WESTERN INTERNATIONAL SECURITIES, INC. of Pasadena, California, financial advisor, KAREN TRAN CHUNG (KAREN CHUNG). According to FINRA’s  BrokerCheck, KAREN CHUNG, has been in the securities industry for 20 years and has been listed with 4 firms.  She is currently listed with, WESTERN INTERNATIONAL SECURITIES, INC., 70 S. […]

March 26, 2024
Stifel Fined $400K by FINRA

According to a recent article in Wealth Management, Stifel will pay over $400,000 to settle FINRA disciplinary charges that the firm allegedly did not properly supervise one of their registered representatives who misappropriated over $100,000 from an elderly client. Stifel agreed to the penalties without admitting or denying FINRA’s findings. In addition to a $400,000 penalty, Stifel […]

Contact us Nationwide USA
2401 E. Atlantic Blvd., Suite 305, Pompano Beach, FL 33062
Helping clients recover money across the USA
search
Copyright © 2022 Soreide Law Group, PLLC  |  All Rights Reserved
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram