The demand for oil and gas is only going to increase in the coming future. If you’re looking for an investment opportunity that has the potential to deliver promising ROI in future, consider oil and gas. At FIG Tree capital ventures, we are committed to providing direct investment opportunities in the oil and gas sectors in Texas, Oklahoma and North Dakota. Investing in oil and gas can have the potential to deliver great returns, however, there are a few factors that one needs to consider before they put their money down. In this blog post, we list a few risks to consider before investing.
Geological Risk
Definitive prediction of the presence of oil is definitely a bit unpredictable. Though technological advancements have made it easier for shale owners to detect oil and extract it with maximum efficiency, there’s still a certain amount of risk with regard to accuracy. FIG Tree understands the reason for apprehension among investors, thus the team conducts geological surveys for ensuring the presence of oil before it invests in a well.
Political Scenario
If there’s a big change in the political scenario, it might affect the oil and gas industry. New governments often introduce changes in trade tariffs, taxes, and labor laws, which would impact oil investments. To avert such a scenario, you should invest with a firm that has a comprehensive understanding of the market and its potential volatilities.
Cybersecurity Issue
Any threat to the cybersecurity of an oil investment company could significantly impact operations and lead to undetected spills, downtimes or even shutdown of the operation. The oil and gas investment company you partner with should follow Homeland Presidential Directive 7 that has the clause to improve the infrastructure of a company against any kind of cybersecurity threat. A compliance with NERC CIP guidelines is also a must in such scenarios.
Changing Oil Prices
There are always inherent risks during drilling/fracking while other unpredictable operational costs can impact the profitability and success rate of any project. A great way to reduce the risk involved is by diversifying the investment portfolio. FIG Tree has multiple wells in each of their programs in different locations, which means we are always prepared for unforeseen problems through diversified investment options in this sector.
Wrapping Up
Oil and gas could be a lucrative investment option, provided you choose a reputable partner. FIG Tree Capital Ventures has helped investors reach their financial goals with its diversified risk and potentially profitable investment strategies. We have a team of experienced consultants who can help you make the right investment decision. Give us a call at (866) 300-2170 and we will be happy to assist you.
