[Posted on March 11th, 2014 by Michael L. F. Slavin]
When most people think of investing, stocks, mutual funds, and IRAs are what likely spring to mind. Few people are aware of the great benefits available to individuals who are investing in oil wells. Below are several reasons oil wells are a great investment opportunity every American should consider.
A Better Business Model
When an investor teams up with U.S. Emerald Energy to participate in investing in oil wells, the arrangement takes the form of a direct partnership joint venture. Each party to the agreement brings something different to the table. The investor provides the capital needed to purchase supplies, mobilize equipment and pay workers, while U.S. Emerald Energy contributes the experience and knowledge gained from over 22 years in the oil and gas business. The investor can participate in the process to the extent he or she is willing, but nothing is required beyond the initial capital outlay.
Superior Research and Exploration
Scouting likely areas for drilling is an ongoing process for the professionals at U.S. Emerald Energy. State-of-the-art technologies like seismic testing are used to gather information that can be compiled into digital maps of the subsurface. Care is also taken to only locate new wells in areas with proved, undeveloped petroleum deposits. Although not a guarantee of success, these responsible exploration and drilling practices are intended to reduce the risks to our investors from an unsuccessful well project.
The return on most investments is limited by the principal invested, the rate of return and time. However, when investing in an oil well, the returns are limited only by the amount of petroleum contained in the subsurface deposit and the price of crude oil at the time of extraction. Eventually all oil wells dry up, but U.S. Emerald Energy uses our advanced exploration methods to only drill in areas that contain multiple levels of productivity. These multiple layers offer the potential for a well to be productive longer than if a single productive zone is tapped. Another benefit of oil well investing is that returns are realized almost immediately. As soon as a successful drilling project is completed and the well is brought into production, the investor will soon begin receiving monthly distribution checks that last as long as the well is in production.
With the globalization of the world economy, it’s becoming harder and harder to find ways to truly diversify an investment portfolio. Even types of investments that seem different are often interconnected. For an investor who already has a portfolio filled with stocks, mutual funds and real estate properties, adding an oil well to the mix is a great way to hedge against loss if the stock market fails or the housing market takes another hit. Although the prices of oil and oil products rise and fall due to the basic laws of supply and demand, oil is critical to fueling the world economy and will continue to be a valuable commodity. Investing in an oil well also provides exclusive tax deductions that aren’t available when participating in other forms of investing.
Whether you’re new to investing or you’re already sitting on an ample portfolio, oil well investing is a great opportunity to investigate further. For more information, contact U.S. Emerald Energy today. When you call, we’ll be glad to tell you more about our experience with exploration and drilling, explain how our direct partnerships work, and answer any other questions you may have.