All information is provided for informational purposes only and considered “as is,” — not intended for trading purposes or advice — lexstarenergy.com or any representatives are not liable for any informational errors,incompleteness, or delays, or information contained herein. To obtain further information, you must complete our questionnaire and meet the suitability standards required by law. The interest may be sold only to accredited investors, which for natural persons, are investors who meet certain minimum annual income or net worth thresholds. The securities are being offered in reliance on an exemption from the registration requirements of the Securities Act and are not required to comply with specific disclosure requirements that apply to registration under the Securities Act. The Commission has not passed upon the merits of or given its approval to the interest, the terms of the offering, or the accuracy or completeness of any offering materials. The interest are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their interest. Investing in oil and gas involves risk, and investors should be able to bear the loss of their investment.
The US oil industry is expected to grow in the coming years. Image: Flickr
What You Need to Know About Oil Investments
According to new data released by the Obama administration, the U.S. has twice the quantity of oil that it was previously believed to harbor.
Oil production in Texas, the country’s top oil producing state, has been predicted to double by 2020, meaning that there is no better time than the present for oil investments.
What do you need to know before investing in oil? Here is a rundown of the main points that you should be aware of: –
Investment scams– unscrupulous individuals frequently attempt to take advantage of those wishing to make an honest investment. In order to avoid falling victim to scams, ensure that you carry out due diligence and research the company that you will be investing in. It is important to find out as much information as possible before committing to an investment.
The risks– oil is a relatively sound investment. However there are risks involved in any investment so you should decide upon the precise nature of the investment based upon your risk tolerance. This is dictated by your financial situation, age, personal preferences, current investments and a range of other factors.
Importance of diversifying your portfolio- Crude oil investing can reap substantial rewards but you should also make other investments and diversify your portfolio. A well-diversified portfolio is an effective method for protecting your finances from market uncertainties.
Tax benefits– there are valuable tax benefits to crude oil investing. Whilst these benefits apply to everyone who is investing in oil, it is still advisable to consult an accountant in order to be sure that you take full advantage of them.
The Returns– The question on most investors’ lips is, ‘What return will I get on my investment?’ Investing in oil can be highly profitable. It is common to have projected returns that are between five and ten times initial investment.
Facts and Figures- Still unsure of whether oil investments are worthwhile? Why not conduct further research on the topic and read up on the U.S. oil boom?
Oil supplies in the United States have just reached a new peak. It has been predicted that the country will replace Saudi Arabia as the world’s top oil producer by 2017.
The impressive levels of oil production that the nation is currently experiencing are likely to continue for a substantial period of time. America’s oil boom is no flash in the pan; it is tipped to display a high level of longevity.
The Final Decision
Once you have conducted the necessary research and familiarized yourself with the points listed above, it is time to make the final decision as to whether or not you wish to invest in oil.
There are risks and pitfalls to investing in this commodity, as with all other areas of investment. However the rewards outweigh the risks.
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