“US Land Drilling is Surging”
Due to the volatility of the stock market and concerns over new governmental tax policies, investors are flocking to long term producing hard assets like oil and gas drilling investments. The Energy Department forecasts that U.S. production of crude and other liquid hydrocarbons will average 11.4 million barrels per day in 2013 compared to Saudi Arabia’s typical output of 11.6 million barrels. This increase is primarily due to a surge in private land based drilling ventures.
Most accredited investors choose to partner with small land based drilling companies due to reduced drilling cost and more favorable tax benefits. CBS news released an article about this surge in oil production last October in 2012 called “U.S. may soon become world’s top oil producer”. It looks as though investors are changing their investment portfolio for 2013 to include oil and gas drilling investments.