Oil and Gas Investments: Four Different Types to Help Investor

Milton Ferrara September 9, 2017 Comments Off on Oil and Gas Investments: Four Different Types to Help Investor
Oil and Gas Investments: Four Different Types to Help Investor

 

Oil and gas make the world go round, and there’s no indication of that changing at any point in the near future. Oil has a large number of uses in the industry, as it can be utilized as a lubricant while Natural gas is a well-known source of cooking. It can likewise be converted into electricity and diesel fuel and is essential in the making of chemical fertilizers. On the off chance that you are thinking about how to invest in oil, listed below are four kinds of oil and gas investments.

  • Exploration – These projects (companies) lease or buy land invest money in drilling. In the event that they strike oil, the venture can pay off 10 times over and if not, they may lose about all that they put resources into that undertaking. Pure Oil and Gas exploration companies are best for investors with a high tolerance for investment risk.
  • Developing – These projects drill near established reserves, hoping to release further value. These are to some extent less speculative, but there is no guarantee that their efforts on any one part of the land will bear fruitful.
  • Income – These projects involve the acquisition of land, whether purchase or lease, over proven oil and gas reserves and seek out to create a stable income over and above expenses. This is probably the secure way to get involved in the extraction and drilling operations. It is more of an income play than a speculative.
  • Services and Support – These companies provide unlimited options for supporting services to the oil and gas industry. Examples include construction and rigging companies, drilling and refining hardware and equipment manufacturers, pipeline companies, refiners, shipping, and logistics companies and many others.

One can also take help of Honeyguide Energy Partners – a Houston-based private investment firm focused on direct investments in domestic onshore upstream oil and gas assets. The Principals of HGE combine global oil and gas operating and investment experience.

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