|
Now that the price of oil has hit record levels, many investors are seriously thinking about investing in oil and gas exploration. But oil investments, especially investing in oil wells is not for the hesitant investor. Investing in oil wells is not something a first time investor would think of doing successfully, probably because of the risks involved and the lack of substantial finance. Therefore, an investor who has the money and wishes to invest in oil exploration should be credited for taking the risk. Before you take the big step, enquire with a person who has earlier invested in a wildcat well or knows how the game is played. It is an important step, because successful oil companies do not send out feelers or place magazine ads to attract investors. Since good companies usually hit the target when finding oil, they have a loyal set of rich investors who are ready to put in money, anytime. Mostly, untrustworthy companies and not so successful businesses will send out feelers to interested investors. If you have a friend in the oil and gas industry, ask him about trustworthy companies who are seeking investment. Contact and convince these companies to allow you to be their investor. The bare minimum investment for such companies may not be more than a few thousand dollars for a share of the oil wells lifetime revenue. This is for wells digged to around 5,000 feet deep in a not so difficult area. For deeper exploratory wells, the oil investment runs into hundreds and thousands of dollars. Investing in oil wells is a risky business but to laugh it off, it is better than gambling money on slot machines. It all depends on discovering a company that permits you to invest in a well that is nearby productive well and has good seismic knowledge. If you find investment in oil wells too risky, invest in shares of successful companies who have recently digged a new well. Since these companies have the latest technology and are well equipped in exploration of productive wells, there are good chances they will lay pipelines to the new well. You could also invest in stocks and the more conservative could go for ETFs made up of several oil and gas companies. So, if you have the finances and are ready to take the plunge, investing in oil wells will provide a number of benefits to protect and grow wealth. Kyles Humphrey is an experienced journalist in oil related fields, who regularly writes articles related to oil prices & indexes and crude oil including tips on investment in oil. Please visit oil.com for more details.
Related Articles -
oil investment, investment in oil, oil investments,
|
