Integrated oil companies liquidating trusts

Royalty trusts typically own oil or natural gas wells, the mineral rights of wells, or mineral rights on other types of properties.

They are a powerful investment tool for people who wish to invest directly in extraction of petroleum or mining of other materials, but who do not have the resources or risk tolerance to buy their own well or mine.Additionally, since trusts often own numerous individual wells, oil fields, or mines, they represent a convenient way for the average investor to diversify investments across a number of properties.Also, since commodities are considered a hedge against inflation, the popularity of royalty trusts as investments rises as interest rates rise, and their shares often rise as a result.An integrated oil and gas company is a business entity that engages in the exploration, production, refinement and distribution of oil and gas.Given the high entry costs relating to many oil and gas industry operations, many of the world's largest oil and gas companies, like Chevron Corporation and Exxon Mobile, are integrated.in 2007, their distributions were often in the 10 to 15 percent annual range.Important Note: This page contains Division of Investment Management no-action letters dated on or after January 1, 1993.Typically, integrated companies divide their various operations into categories: upstream, which includes all exploration and production endeavors, and downstream, which is confined to refinement and marketing activities.Because integrated oil and gas companies are involved in so many facets of the fossil fuel industry, often their business bottom lines can be counterintuitive.The Integrated Drilling Trust does exploration and production drilling at SOCAR's approximately 25 onshore and offshore fields.It applies new equipment and technologies in accordance with international standards, prevents environmental damage, provides completely safe working conditions that protect its employee's health, faithfully complies with industrial and administrative regulations, and fills customer orders on time and proficiently without financial violations.

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