Types of Oil & Gas Investments

david123 By david123, 16th Nov 2017 | Follow this author | RSS Feed | Short URL http://nut.bz/2_en5xom/
Posted in Wikinut>Money>Investing

In today’s global economic condition, everyoneis focused on the crisis. Still, many are looking forward to the fact that there are excellent investment opportunities open if you know where to find them and how to calculate them.

Types of Oil & Gas Investments

In today’s global economic condition, everyoneis focused on the crisis. Still, many are looking forward to the fact that there are excellent investment opportunities open if you know where to find them and how to calculate them.

Oil and gas production in Oklahomais one such opportunity. In this post, you will learn why it is still a good investment.

Oil is one of the productsthat has significantly contributed to the tidal wave of growth across the world. We just can't imagine a single day without this essential commodity. Whether a developing or a developed country, oil is needed to drive trucks, cars, planes, ships and more.

Types of Oil and Gas Investments

Oil and gas investment has unique aspects of finance and taxes that are not seen in any other industry. Investors need to understand the advantages and disadvantages of each investment type.Thisincludes theimpact of accounting methods used, tax benefits or impacts and more.

So, listed below are four major types of oil and gas investments:
#1: Exploring Oil & Gas
#2: Project Expansion
#3: Revenue
#4: Service and Support

Let us discuss them one by one.

#1: Exploring Oil & Gas
The firms or projects buy or rent land and invest money in drilling. If they stroke oil, the investment can pay off tentimes or more, if the company borrowed money or leverage otherfinancial operations.

Image source: cloudfront

#2: Project Expansion

The projects drill near verifiedinvestments, hoping to unlock further value. These are somewhat less speculative than exploration.However, remember, no assurances to these endeavors.Not any plot of land will prove to be fruitful.

#3: Revenue:

Theprojects generally involve the acquisition of plots of land, either through lease or purchase over proven oil and gas reserves. Moreover,investors try to create a steady stream of income over and above expenses.

Image source: forexnewsshop
This form of investmentis considered as the safest way to get involved specifically in the drilling and extraction operations.

#4: Services and Support

The firms provide an unlimited menu of supporting services to the oil and gas properties for sale. For instancestransportation, pipeline companies, shipping, and logistics companies, construction and rigging companies, refiners, and many others.
Oil and gas propertiesare considered as secured investments for you, as they are excellent services to ensuremaximum benefits for many years.

Some surprising Facts about Oil & Gas Industry

#1: The word petroleum means “rock oil.” It is taken from the Greek word ‘Petra,' meaning rock and the Latin word ‘oleum,' meaning oil.
#2: Because of the use of crude oil in the manufacturing of various products such as plastics, gasoline and more. It is known as the “mother of all commodities.”
#3:Did you know, we got oil from the decomposition of organic materials under intense heat and pressure over millions of years?
Remember, oil remains in high demand because it is an efficient way to generate both BTUs (British Thermal Units, a measure of energy) and kilowatt hours. Also uses in theindustryfor various reasons such as a lubricant. Moreover, known as themain component in the creation of plastics.

So, keep this in mind, a large amount of money can be made in oil and gas property in Oklahomainvestments if you do some research and buy or sell at the right time.

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Gas, Oil

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