U.S. Emerald Energy has the Facts about How to Invest in Oil

  • Over Twenty Years in Business, A+ Rated BBB
  • Developmental Wells Only, No Wildcats!
  • Skilled and Experienced Professionals on Staff
  • Take Part in Residual Monthly Income for Years
  • 100% Tax Deductible, 15% of the Income Tax Free

 

How Risky is it to Invest in Oil?

One of the first questions that investors looking into how to invest in oil have is how risky is the investment. Investing in developmental drilling is not as risky as many people think. Advances in technology and choosing the right area to drill plays a huge role in reducing the risks associated with oil investing.

Newer, 3D seismic technology helps companies to find areas that may be successful when it comes to drilling for oil. This technology combined with new analysis software helps reduce the risk investors may face with oil by increasing the chances of finding a successful area.

In addition to the software/technology that is used, risks can be reduced by choosing to drill in known, successful areas. It is best to avoid drilling in unknown areas, called wildcat wells, because there is only a 10% chance of success. Instead, choose companies that choose to drill a developmental PUD well as the chances for success increase to up to 80%.

People who are looking into how to invest in oil should understand that this type of investment does have risks, but there are ways to reduce those risks. Contact us at U.S. Emerald Energy, Inc. to learn how risks can be minimized when investors wish to invest in oil.

Why Should I Consider Investing in Oil?

People should consider looking into how to invest in oil because it allows for diversification of investment portfolios. Diversification of investment portfolios allows people to increase their chances of seeing a profit with successful investments.

In addition to the diversification of investment portfolios, oil is a good investment because it has a history of being successful. Every year for several decades, oil has outperformed almost every other investment. Those that have invested in it have seen huge returns on their investment, which makes this type of investment opportunity appealing.

Investing in oil is compelling due to the large returns investors see and the numerous tax benefits. Contact us at U.S. Emerald Energy, Inc. to learn more about how to invest in oil.

Why is Investing in Oil Different Than Investing in the Stock Market?

The biggest difference between investing in oil and the stock market is the potential investment return. When people invest in an oil well, there is little or no risk involved with seeing a return on the money invested. The stock market is extremely risky. It is always fluctuating because investors are at the mercy of the market, which can go up or down at a moment’s notice.

Another difference between the two types of investments is the ability to have a tangible entity. An oil well investment is a tangible entity that the investor can visit and see how it is progressing. The stock market is not tangible, which leaves investors without the ability to physically see their investment and assess its progress.

People looking into how to invest in oil should know that it is less risky than the stock market and it is a tangible entity. Contact us at U.S. Emerald Energy, Inc. to learn more about how to get started in investing in oil.

 

Advice and tips on how to invest in oil

  • January 14, 2016

    Published by  US Emerald Energy

    There are a number of different ways you can invest in oil and gas, which can make it confusing for beginning investors to know where they should start. The following are some basic tips and advice on how to invest in oil:

    1. Mutual Funds or ETFs.  Buying shares in a number of oil mutual funds or ETFs can help you gain great exposure to this exciting commodity without having to take a direct risk or tying up too much money in the prospects of a solitary oil company. However, unless you invest a significant portion of your finances, this will result in smaller returns.
    2. Large Cap Stock or ADRs Buying stock in publicly traded companies is one of the main ways to obtain exposure to oil markets. There are many smaller oil companies that engage in oil exploration and you can buy directly into them through purchasing shares or ADRs (American Depositary Receipts).
    3. Small or Micro-Cap Stock and Limited Partnerships.  Investing in small or micro-cap stock is a great way to take a more direct equity position with smaller and more focused companies and projects. This is considered a more specialized form of investing as such companies frequently aren’t publicly traded. However, if you choose to invest a significant amount, it is likely you’ll have the opportunity to deal directly with the management of the company for even more lucrative private placement opportunities.

    Types of Oil Investments

    1. Exploration – Projects that buy or lease land and invest in new drilling operations.
    2. Developing – Projects that drill near proven reserves.
    3. Income – Projects in which land is acquired over proven oil reserves for steady streams of income.
    4. Services and Support – These companies are geared toward assisting drill operations such as with transportation, pipeline construction, etc.
  • December 15, 2015

    Published by  US Emerald Energy

    If you’re considering adding an oil investment to your portfolio, you probably already know all about its many, unique advantages. And if you have yet to get started, it’s probably because you’re unsure of how to take the first step towards a solid investment with a positive outlook- what you should consider and what you should look out for. US Emerald Energy is here to offer you some of the top tips from our highly regarded experts.

    1) Make sure you’re working with a credible company

    Like with all investments, fraud is a real danger in the oil industry. Individual investors can be especially vulnerable, as con-artists will view them as potentially easy prey. How can you pick out a trustworthy oil company from the crowd?

    The BBB (Better Business Bureau) provides a current rating of all accredited businesses based on customer satisfaction. By choosing an oil company with a well-established BBB rating, you can rest assured that you are working with a company that is highly regarded within the industry.

    2) Make sure you’re working with a current company

    Oil drilling is no longer about luck and good fortune. Today, oil reserves can be detected by 3D seismic technology-at least for the companies that choose to invest in it. Such equipment is a worthwhile investment for any company that is serious about oil returns because it provides a clear idea of which areas have proven reserves and multiple pay zones. These are the companies to work with.