Looking For Oil And Gas Leads – A Practical Guide

Oil and gas investors have had some very interesting years recently, and the fun has no signs of stopping. As alternative fuel sources are being looked at seriously and there is some debate over when peak oil was reached and how long the current oil reserves can last, oil and gas have remained consistent markets.

opecThis is helped no doubt by oil’s use in plastics and that natural gas is a proponent of the alternative fuel movement. Combined with how OPEC and others are rationing oil, this makes oil investors somewhat comfortable that although we may be running out of oil, we still have a long time before it because a major problem.

Looking For Leads

Oil investors are no longer looking for companies that merely deal in oil. That is, they are looking for companies that have diversified at least somewhat into other fuel sources, as well as those that are looking for alternative sources of oil.

Any good investor is always looking for new ways to invest his money, and usually that means new companies. Most of the oil is locked up in the same companies it was even a few decades ago, even if they have swallowed up in mergers or changed their names; although that stock is available it can be hard to obtain, especially for a new investor. This sends those new investors into some interesting territory.

That Interesting Territory

This means that new investors are looking for new oil and gas leads that are involved in the oil business, but usually on the edge of it. Pipeline construction companies, for example, are looked at as viable markets because there always seems to be some sort of construction or maintenance happening.

Those looking for alternative sources of oil are also being investigated, such as those companies that are looking at producing oil from plants. Natural gas has also received a lot of attention, especially as some states are looking into the possibilities of establishing natural gas pipelines.

Alternative Sources

Some oil investors are looking into natural gas as it is poised to become the next major fuel. Natural gas may not be as efficient as oil is but it is nonetheless more powerful than current alternatives, and can be shipped as easily.

As such, natural gas stock has seen some influx of capital, even though that does tend to wax and wane. Oil and gas investors have some interesting times ahead but a shrewd investor should be able to keep ahead.

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.

fortune500

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.