Who Should Invest in Oil?

[Posted on June 26th, 2013 by Michael L. F. Slavin]

Choosing to invest in oil is an exciting and potentially lucrative opportunity. While you don’t need to be well versed in the oil and gas industry in order to invest, there are certain qualifications you should possess.

Financial Stability

US Emerald Energy does everything in its power to make sure your investment is lucrative. This includes cherry-picking the areas they decide to drill; drilling in areas that have proven undeveloped reserves; using the latest technology to speed up the process, ensure safety, and avoid delays; and allowing you to have say in major decisions and well buyout offers. These reasons, coupled with over two decades of experience and expertise, allows US Emerald Energy to give you every chance at seeing a good return when you invest in oil.

However, no investment can be guaranteed; drilling for oil isn’t an exact science and, even when oil is found, markets can be fickle and value can fluctuate. For this reason, no one should invest in oil as a "get rich" scheme nor should the investor expect to see instant results. Rather, you should invest in oil only if you are financially sound.

Do Your Research

You certainly don’t have to be an expert at drilling to invest in oil; in fact, you can rely on the expertise of US Emerald Energy. Still, it is a smart idea to have a basic knowledge of how oil investing works. This knowledge can add value to the joint venture and help you make well informed contributions.

An Investment with Tax Benefits

According to the US Energy Information Administration, in recent years Americans have made up nearly a quarter of the world’s oil consumption. The reason for this is because we rely heavily on oil for everyday functions: from transportation to producing plastic, oil is vital to the underworking’s of the US. Unfortunately, our domestic production can’t keep up with our high demand which makes the US dependent on other nations.

The reliance on foreign oil is expensive, and the US would like to minimize if not eliminate it. For this reason, tax laws have been passed that encourage people to invest in finding domestic oil. These include two major benefits: Intangible Drill Costs that are 100 percent deductible during the first year and 15 percent of gross income that is tax exempt.

Feel Good About Your Investment

Many individuals invest in things merely as a way to make a profit, but there are also those who invest in products that they believe in. While oil is essential to our nation’s success, the oil and gas industry is also vital to the job market. This industry supports over 9.2 million jobs in the US. It has also invested in the country so invested in it: in the past ten years, oil and gas has contributed nearly 2 trillion to domestic capital projects.  

While the oil and gas industry is a smart investment, it shouldn’t be your only investment. Rather, diversify your stocks and invest in industries that have no relation to each other. This gives you the opportunity to protect your margin of profit, and increase your earnings.

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