[Posted on February 20th, 2015 by Michael L. F. Slavin]
For many people looking to make some extra money outside a regular job, investments can be a big boost to a bank account. Investing in oil and gas can really help to expand investment portfolios and also assist with risk management. Those who are new to the investment world should do a little research, consider shopping around for a good deal, and be unafraid to ask questions to get all the facts. Terms like ‘exchange-traded funds’ (ETFs) and ‘unit-investment trusts’ (UITs) should be well understood before taking the step into a new investment. Where and how can someone get started with oil investment, and what are the benefits? Understanding the basics is the first step to making a successful use of time, money and resources when it comes to gas and oil well investments.
The Rookie Investor
Individuals new to the gas and oil investment scene can become easily overwhelmed by all the information available to them. Finding the right company and knowing which decisions will be the best for your situation can be stressful and daunting. Having someone at your disposal to answer questions and fill in the blanks will offer the best chance of success. An adviser, either a friend or a professional, can eliminate the stress of the process by laying out the steps, offer helpful suggestions, and provide insight during the final decision stage. Making a blind investment can be harmful to bank accounts, so be sure to do the proper research about any companies you might be considering.
One option for investing in the oil and gas industry is to consider developmental wells. In the world of investments, reputation is everything, taking the time to do research on any company under consideration is highly important. More often than not, the best companies will be more than willing to sit down and discuss their packages and projects, and answer any questions potential investors might have about the company. Knowing how long the company has been in service, what technology they use, how they survey for a drill or oil site, and how they handle investors is key information to have before signing any papers or handing any money over.
Return Comparison and Tax Advantages
Investors should allow a year to accurately compare returns. Positive cash flow can take a while to accrue, building up over time once the initial investment is made. It takes a great deal of patience, especially for those changing mutual fund investments, which can help to improve returns. In addition to significant returns, oil investors also get tax benefits. Individuals investing in oil receive tax credits, freeing them from the obligation of paying extra. U.S. Emerald Energy takes care of their own, and even if a drill yields what is known as a dry hole, investors are guaranteed tax returns. A portion of the original investment will be refunded by the company, and the rest is reimbursed through taxes, so the investor doesn’t lose a single penny in an unsuccessful drilling.
Whether it is the tax advantages, the return guarantee, or the odds of being a part of a successful investment company, oil and gas is an attractive option for many investors. Consider U.S. Emerald Energy’s packages, and take advantage of their open door policy to learn more about their company and their success.