Making the Most of Your Oil and Gas Investments

[Posted on September 10th, 2014 by Michael L. F. Slavin]

Perhaps the best reason for investing in oil and gas is not just the still healthy demand for it in today’s world. There’s also the widespread nature of its use. Of course, its most well-known use is for power or heat generation: mainly vehicles, but also water heaters, furnaces, boilers, and heating/cooling systems. However, fossil fuels are used for manufacturing a wide range of everyday products, which include containers, bottles, and lubricants. It’s obvious that oil and gas investments will have a strong market-value for long time to come.

The Joint Venture Concept

Energy companies like Texas-based U.S. Emerald Energy-which is run by oil and gas exploration veteran Michael L.F. Slavin-firmly believe in joint ventures for clients who are interested in oil and gas investments. A joint venture means that the investor and the oil and gas company will enter a business agreement. Such an agreement establishes that each party will bear the responsibility for any resulting profit, loss, and costs. The contract also establishes that the joint venture is a separate entity, kept apart from other business interests that either party may have. Joint ventures are meant to nurture trust between both parties; investors do not need to feel that they will be left out in the cold if all goes wrong.

PUDs

Many companies use 3D technology to inspect and estimate the properties of the Earth’s subsurface. More specifically, technology can be used on proved undeveloped zones, which are zones of pay that are not produced but have been identified. Most developmental oil and gas wells have a PUD zone, and success for wells with such zones is around 80 percent.

Thorough Research

Your best chance at optimal oil and gas investments is to go with a company that conducts thorough research. After estimation, a company may be able to come up with hundreds of oil and gas prospects, which are then presented to investors. With further scientific research, the number can be whittled down to a few dozen, and well-trained and experienced geologists can be called in for even more analysis of the company’s findings. When the final prospect is presented before the investor, he or she is therefore assured that the company has found the very best possible one. This increases the chance that the investor will continue to reap great profits for years and years.

Multiple Pay Zones

If you want to increase your chances of increasing wealth from oil and gas investments, go for wells that have multiple pay zones. That way, no matter what happens, you will get at least one stream of income, instead of coming up empty.

Bookmark and Share

admin