Wednesday, December 24, 2014

Oil And Gas Investment Opportunities Brief Introduction

By Stacey Burt


A few years after the year 2000, there was a general rise in the cost per unit of gas and oil due to the increased reliance of a major source of energy. Oil and gas investment became very attractive among such opportunities with petroleum investments among the most attractive opportunities. The Organization of Petroleum Exporting Countries estimated that in 2008 the energy requirements raised oil demands to between 86 and 87 million barrels per day.

There is an opportunity for any investor to get into the industry without any tax requirements on any units they invest. The investment opportunities range from oil exploration to mining machinery. It is nowadays not very uncommon to find gas or oil investments providing a leeway from any challenges along the way. Shared finances and any future contracts are typical investments in this industry.

Several investing opportunities are available in this ever-growing industry as there is an opportunity suitable for everyone, from the small shareholder to the big investor. One of the easiest methods of investment is purchasing stock in oil and drilling companies. Larger investors can use exchange-traded fund (ETF) to make direct investments on future contracts in the oil sector. Before investing, it is advised that a thorough research of the sector be carried out, and the services of an energy investment professional be employed.

Oil and gas are now the world's foremost sources of energy ensuring the industries are a major force in the world's economy. A perfect example of these multi-purpose sources of energy is petroleum as it has many uses from providing lubrication to machinery, to being a component in the manufacturing of plastics.

Exploration opportunities involve companies leasing or buying land and prospect to make money through drilling. This is a risky investment as striking oil is not a guarantee. Income opportunities involve the acquisition of land or plots near proven energy reserves. Energy investments require certain services and support services, hence some opportunities come up such as transportation services; pipeline companies for the transportation of the drilled oil; other companies include the shipping and logistics companies manufacturers of equipment ;refiners; and rigging companies.

Throughout the history of this lucrative industry, oil price rises have had the consequences of either stagnating or sinking an economy. The profits in this industry therefore are also subject to the same treatment, and investors are educated to be prepared for the same consequences in case of a fluctuation. The good news is that, there is always the likelihood that prices are mostly skyrocketing than diving and the profits can even take multiples of 10 within no time.

However, when the risks anticipated occur, such as when there is no oil found at a given site, the investors are set to lose. The investors, therefore, may seek to redeem their interests from various options available through brokers. Brokers can be costly with some charging more than a quarter of the funds received.

Investors know risk well and at any given time, there is likelihood that they are always prepared for the worst. Any kind of risk is always assessed and anticipated with measures put in place. The more experienced the investor is, the better the success rate after factoring in all the possibilities.




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