Return On Investment In American Oil and Gas

Investing your money is one of the surest ways of securing your financial future but this also depends on the investment vehicle you choose. There are so many investment opportunities available today but very few of them are as profitable as oil gas investing. This is one of the few investment opportunities that come with numerous advantages and low risks, if any.

High Return On Investment

Firstly, when you invest oil and gas, you will be guaranteed of a high Return On Investment. Oil and gas investors have the potential of earning up to 100% ROI within a period of around 5 years. Under normal circumstances, investors receive around 100% ROI within 10 years for ordinary investments.

Oil and gas investments are therefore more profitable than the ordinary ones given the fact that the investors are able to get their money back plus maximum profits within a period of 5 years or even less.

Safety Guaranteed

Gas and oil investing requires little maintenance or security. Since oil reserves are found underground, they cannot be tampered with in case of any political, social or economic crisis. This is unlike the ordinary investment vehicles that are stored in buildings. They can be destroyed or stolen anytime.

Rising Demand Versus Dwindling Supply

The other thing you need to know about oil and gas investments is the fact that they have endless demand. When you invest on something that has been on demand for thousands of years, you will always be guaranteed of a stable financial future for your family, children, grandchildren and great grandchildren. Oil and gas have always been described as the black gold and this explains why the two are on demand in every part of the world. They are used for industrial, commercial and residential reasons therefore expanding their market base.

oil graph

According to analysts, the demand for oil and gas has reduced the rate of supply. These two commodities are not easy to get and this factor has greatly increased their demand. As more countries continue to import and export oil and gas, you will be guaranteed of earning great profits due to the high demand and low supply. This explains why the prices of these two precious commodities keep on rising every year yet other investments seem to maintain a constant price.

Oil has always been seen as the symbol of power because it is often associated with famous tycoons in the world. Investment oil gives you the chance to become the next tycoon due to the profitability of this kind of business. Besides, oil investment companies are always looking for business partners to help them mine these two natural commodities and that can as well be your best opportunity to make an impact and solidify your financial future.

It is indeed true that there are so many investment options available today but the profitability of oil gas investing is what makes it one of the best options. They are among the few investments that are safe, reliable and profitable at the same time.  If you are interested in securing your financial future, then consider investing in these two precious commodities.

Most Profitable Options For Oil and Gas Investing

There is a common misconception amongst consumers that they need a significant amount of money to invest oil. However, that could not be further from the truth. Every investor can invest in the oil industry without necessarily having a lot of money. In fact, it only takes a few dollars to own a piece of the biggest oil and gas companies in the US. The following are some of the available options for oil gas investing in the United States.

1. Penny Stocks

A penny stock is simply a common stock that is only worth a few dollars; usually less than $5. Some new oil and gas companies that are involved in overseas oil and gas exploration have penny stocks. One of the simplest ways to invest oil is buying a huge chunk of these penny stocks and watch their value increase with time.

pennystocksIt is important to note that this type of investment is not for the risk-averse. Consider a case where an investor purchases 10,000 penny stocks of a little-known oil company that is just coming up for just $1 each. After two years, the company strikes oil in one of its overseas exploration blocks. The share price will obviously increase with news of the discovery. It is not unreasonable to assume that the share price may rise to around $7, or even higher. This will translate to a huge profit for the investor. Investors who specialize in the penny stocks of oil investment companies normally get very high returns. Since these stocks are usually very volatile, they are prone to pump and dump schemes. Therefore, investors need to be very careful when investing in penny stocks.

That said, the SEC has put in place measures to protect investors from price manipulation, insider trading and other malpractices that may devalue or overvalue stock prices to the benefit of a few unscrupulous individuals.

2. Blue-Chip Stocks of Oil and Gas Companies

In the US securities market, there are many Fortune 500 companies that investors can own a piece of. Most of them feature in the S&P 500. You can make an investment oil by simply purchasing as many of these blue-chip stocks as you can afford. Once you do, you can be assured of getting the best returns possible from the market. Most Fortune 500 oil companies also have dozens of subsidiaries that investors can look into. These firms can provide decent returns on investments.


3. Corporate Bonds

Oil and gas companies, like other corporations, normally issue corporate bonds to bridge their financing gap or get funds to expand. The interest paid on these bonds are usually very attractive. Anyone who wishes to make oil investments can simply purchase these bonds and get a fixed income every quarter or half year.

The best thing about corporate bonds is that like stocks, they can be used as collateral for loans. Corporate bonds can also be traded on the free market in the securities exchange, so cashing out will not be much of a challenge if the investor wants to liquidate his or her bonds.