[Posted on July 16th, 2014 by Michael L. F. Slavin]
In 2014, the price of oil has averaged over a hundred dollars per barrel. The price of oil fluctuates, increasing or decreasing based on a multi-variable market. Supply, demand and projections for future supplies have an effect on this pricing. However, as oil continues to be in greater demand, especially as modernized countries expand and third-world countries industrialize, the economic laws of the marketplace helps to assure that oil will become an increasingly more valuable commodity. This makes investing in oil an enticing financial opportunity for many.
The Advantages to Investing in Oil
For most interested investors, the profits and continued supply of the resource which is the biggest advantage to investing in oil. Other perks include the ability to hedge your oil investments against the stock market and the world economy; tax breaks (oil investing is 100 percent tax deductible and 15 percent of your returns are tax free); income delivered on a monthly basis; and the potential for very large returns.
Before Investing in Oil
Investing in oil blindly could cause you to lose money, just as investing in anything blindly results in similar circumstances. Instead, investing is a serious financial commitment and one you should never make unless you are prepared.
The first thing you should do is contact someone who can help you make a decision as to whether or not oil investing is for you. Trusting in an industry leader such as U.S. Emerald Energy (USEE), can help to guide you through the process and teach you what oil investing actually entails. Unlike other oil companies, they are enticing to many because of selectivity: they only drill in safer wells; in wells with multiple pay zones; and in areas that contain proven undeveloped (or underdeveloped) oil and gas reserves. The largest advantage to working with their company is that they seek prospects throughout the entire industry; this helps them assure they drill the cream of the crop.
After learning about oil investing, the decision is still yours to make. You should carefully determine whether your stock or investment portfolio can handle the short-term fluctuations oil investing brings. The price of oil appreciates over time, but prices can go down in the short-term and this is something you need to be comfortable with. These short-term fluctuations are most often correlated with the seasons: summer, for example, sees the demand for oil rise with many people flying, driving, and boating.
You must then decide which investment vehicle you want your funds put into; this is something else USEE can help you with. Some people opt to invest in mutual funds; others opt for exchange traded funds (ETFs). Some people even choose to invest in futures contracts.
The Services Offered by USEE
USEE is unique in their services offered and technologies used. They allow investors to directly participate in oil and gas wells if they desire to do so, and offer joint-ventures. They are also experts in exploiting areas of known reserves and using technological advancements to minimize the risks innately involved with drilling. Finally, their reputation precedes them; they are well known as a company investors can fully trust and rely on.