The oil market can be very confusing to both the professional and individual investor, with large price fluctuations sometimes occurring on a daily basis. This article explains the forces driving the market and how to have a financial stake in oil-price fluctuations without opening a futures account.
Oil and Gas Investment
In order to explore the best investment opportunities, you should search for the sectors that will ensure a stable and steady income. Oil and gas are considered as the sectors that have produced a good return for a long time. It is impossible to imagine an emerging economy to survive without oil, which is considered as a natural resource. There are over 2 million applications used with the molecule of oil. This is the reason due to which the global consumption of oil has increased to a significant extent that is resulting in a high demand for the oil and gas investment.
There are many oil and gas refineries which are known to provide crude or enhanced products to the required places. These refineries help to maintain an easy flow of oil and gas producing many quantities of barrels per day. Apart from providing the continuous supply of oil and gas, these refineries also prove out to be one of the best sources of investment.
Way of Investing in Oil and Gas
You can approach oil and gas investing in a number of different ways. For example, you can consider the industry a collection of companies providing products or services to consumers, as well as to other players in the oil and gas industry itself. Like:
Below is a list of five basic investment vehicles:
- Stocks in Oil Companies
- Working Interest Partner in a Drilling Program
- Existing working interest in a lease.
- Stock in royalty trusts
- Oil and gas royalties direct from mineral owners.
So look at your investing needs and pick the investments that are suitable to you.
Oil and Gas Market in USA
One of the major problems the oil market faces is the lack of high-quality “sweet” crude, the type of oil that many refineries need to meet stringent environmental requirements, particularly in the United States. Much of the high-quality oil imported into the United States comes from Nigeria and surrounding African nations; according to the U.S. Department of Energy, together, Nigeria and Angola exported more oil to the United States than Saudi Arabia in 2007.
The content of this article is provided by Shawn Bartholomae. Shawn Bartholomae is the senior partner of Silver Tusk Oil and CEO of PRO AK.