15 Reasons To Invest In Oil & Gas Now:
Oil & gas investments are at the top of the list when it comes to investments with the biggest profit potential. Today’s record low oil prices have led to investors being able to invest in oil & gas at historic lows.
Oil & gas investing is a higher risk than putting money into a savings account, but the potential return on investment on a successful oil well can be staggering. Oil prices are very likely to not only rebound but to spike, and inevitably start an upward trend back into triple digits.
1. Many of the world’s major oil fields are in decline and not enough new supplies are being brought to market to replace declining production from those major fields.
2. Low oil prices are causing much needed long-term energy projects to not be funded. One of the world’s foremost energy research firms, Wood Mackenzie, released a report showing low energy prices could cause as much as $1.5 trillion dollars in much needed global energy projects may not happen now.
3. To find significant pools of oil, companies must now drill to deeper depths, which increase the cost of making new discoveries.
4. According to the Energy Information Administration(EIA), global oil demand in 2017 is expected to increase at its fastest pace in six years. At the same time, the EIA is also expecting US oil production to decline for the first time in 8 years.
5. The uses for oil are growing at a pace that at some point will force oil prices to rise. It’s not a matter of if, but when. Regardless if oil prices spike tomorrow or oil prices spike a year from now, there are oil projects available that make sense at today’s low prices.
6. Since many companies are not drilling at all due to financial issues, new oil finds are not being made at a quick enough rate to keep up with long-term demand, and expensive shale and tar sand projects that provided a good portion of the extra supplies on the market are shut in, what happens when the additional crude supplies currently on the market are gone?
7. The global population boom is causing ever increasing long-term energy needs.
8. The amount of active drilling rigs has been cut in half from where it was in 2014, at the height of the oil boom.
9. The oil price dive has put a great number of oil producers out of business.
10. The drilling rigs that are active are not doing any new exploration. The active rigs now are drilling in mostly existing fields. Existing fields don’t require the same new science and lease costs that new exploration projects do.
11. Executives at many oil companies are making major purchases of their company’s stock, in anticipation of oil prices being at or near the bottom.
12. When oil broke the $70 per barrel mark, many of the world’s oil tar sands producers were forced to halt production or go out of business, lowering oil supplies.
13. Oil prices hitting $45-50 a barrel forced many shale producers to halt production and/or went out of business.
14. Oil prices are lower then they have been in decades. Low buy in prices help to reduce price risk, which is one of the main oil investing risks.
15. Congress has provided tax incentives to stimulate domestic natural gas and oil production to make our country more energy self-sufficient and to greatly stimulate the economics. These incentives are not “Loop Holes” – they were formed to make participation in oil ventures one of the best tax advantaged investments available today.
Not everyone can handle the risk reward ratio that comes with oil investing, but those who are comfortable with a higher degree of risk, can find untold financial rewards. The potential profits and tax deductions possible in oil are virtually unmatched by any other asset class.