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How to Become an Oil and Gas Investor
There is growing interest in the oil and gas industry.
The industry has been subdued until recently when new technology allowed companies to drill for reserves long thought to be unreachable.
Hydraulic fracturing and horizontal drilling are now common throughout the US including in Texas where the industry is really seeing resurgence. Some are calling it the biggest boom in state history, which really says something about an area with such a rich history of oil and gas.
For investors, the opportunity is appealing.
The Oil and Gas Investor Opportunity
Areas throughout Texas including the Permian Basin and Eagle Ford shale are full of oil and gas.
Experts have long known that reserves were below the ground. The issue, though, was the reserves couldn’t be reached. The technology either didn’t exist or was too expensive.
In recent years, technology has improved. Costs have come down. Companies are now able to reach reserves and bring the oil and gas to the surface and the prospects for the future are bright.
The expectation is for the current boom to last for decades even giving the US the potential to become the world’s top oil producer by 2020.
It’s a great opportunity for anyone interested in getting involved.
How It Works: Oil and Gas Investor
Becoming an oil and gas investor is straightforward.
Investors partner with a company that does the research on wells that will produce oil and gas profitably. The independent company does the work to get the well ready to begin production.
Units or shares are sold for each well that will go into production.
Investors purchase these units. The Oil and Gas investment company provides statements throughout the well’s production. After initial costs and ongoing expenses investors receive revenue sharing payments.
This cash flow is one of the benefits of being involved in the oil and gas industry.
Additionally, there are tax benefits to those that invest in oil and gas.
Who Can Be an Oil and Gas Investor?
The SEC has set guidelines for investing in the oil and gas industry. There are net worth and/or annual income minimums that an individual or couple must meet to be allowed to invest in oil and gas wells.
However, individuals aren’t the only ones that can become oil and gas investors.
Corporations, partnerships and other entities can invest in wells.
There is opportunity for everyone that wants to get involved no matter background or expertise.
If you partner with the right company that understands the industry you’ll be in position to take advantage of the growing opportunity in Texas and other surrounding areas.
Conclusion
There is no better time to become an oil and gas investor.
The boom days in Texas are back. New technology is allowing companies to access oil and gas reserves previously thought unreachable.
If you’re an individual there are a few different ways you can become an oil and gas investor. You can invest in units of a well on your own, with your partner or as a corporation.
Partner with a company that has a strong background of success in the industry. Look for opportunities that provide cash flow and tax advantages.
Be part of the industry that is bringing self-dependence back to the United States. The oil and gas industry has a long history in the US. Companies have found ways to drill reserves right here at home and all the hard work will could result in the US becoming the biggest producer of oil in the world.
There has never been a better time to become an oil and gas investor.
Don’t miss your opportunity.
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