[Posted on February 20th, 2015 by Michael L. F. Slavin]
With the domestic energy market brimming with new investment opportunities due to discoveries in drilling and oil technologies, many people are asking how to invest in oil. The following are the best ways to invest in energy and profit from future advancements in energy technology and exploration. While investing in oil stocks and oil drilling are a good way to start building a portfolio, new options are opening up to maximize the value of your investment in new energy tech.
Shale Oil Stocks
Since the advancement of tight oil market, a number of stocks have become available for investment which provide strong returns. The market is bullish enough that Prince Alaweed of the Saudi Royal Family considers US growth in the oil industry to be a catastrophic change. Forbes notes this fact, as well as a number of stocks you can invest in to get a portfolio started in the energy growth industry. The question for many would-be investors is: how to invest in oil.
Investing in Oil Drilling
Whereas investing in oil stocks is fairly straightforward, investing in oil drilling companies rarely is. Most oil drilling “investments” are far more complex than buying stock, involving larger amounts of capital and partnerships. While partnering in an oil drilling investment is not always a bad idea, boiler-room salesmen will push what are actually oil drilling partnerships (often poorly thought out and risky) as investments closer to typical stock purchases, increasing risk and liability for their potential clients. Oil drilling partnerships are an investment of time and money that are not for the average investor, and the discovery of that fact often leads to the state getting involved in fixing such issues. While some smaller partnerships can make a profit, their opacity makes your return trickier to see. If being part of an oil venture is what you’re interested in, it’s better to avoid the pitch on the telephone and invest in the real thing– taking ownership of your role in a legitimate oil partnership.
Investing in Joint Oil Ventures
If you’re ready to take the leap and put your resources to the test for maximum returns on your investment, then entering into a joint oil venture is for you. Entering into a joint oil venture requires more resources in terms of money and time than stock investment. But the returns are greater, and your personal involvement and commitment will help control the destiny of your future joint oil venture. Companies such as U.S. Emerald Energy are pioneers in the field of domestic oil production, taking on new venture partners and finding new sources of oil. Your involvement in the growth of the American energy industry is valued and you are kept in the loop when changes occur in the industry– or when your productive oil project is sold, you recoup your investment and more. With the rise of domestic oil investing, there are unprecedented opportunities for you to take ownership of a share in future investments with monthly income that 100% tax deductible and 15% tax-free (an exhaustive list of tax advantages are available here).
While now is a perfect time to invest in energy, there are a few different ways to do it and make a profit. But if a quick return is not enough, and you are looking for a way to be part in the future of American energy while maximizing your financial return, investing in a joint venture is the smartest and most satisfying move.