Energy, a prerequisite to life, has played an indispensable role in helping people manage everyday affairs since the medieval period. Facing an ever-increasing population, our reliance on energy will only increase with time, making it one of the safest and most rewarding investment options out there. Energy investment firms can help you identify the best energy investment opportunities and enable you realize substantial long-term returns. In this blog post, we discuss seven reasons that make investing in energy venture capital firms one of the best investing options for qualified investors. Read on.
1. Huge Market
The energy market stands close to $ 10 trillion, with the delivery of usable forms of energy to the global population forming almost 10 percent of the world’s aggregated GDP. A look at the list of companies with the highest annual revenues reveals that 9 out of 10 are in the energy sector. Given a burgeoning population, you can safely assume that this number will increase in the future, making energy investments a very lucrative option for investors.
2. High Growth Projections
The International Energy Agency estimates global energy demand to increase by more than 30 percent by 2035, taking global consumption to an all time high of 100 million barrels of oil per day. The organization also expects the price per barrel to rise to $125. Investing today can, therefore, open doors to sustainable long-term returns.
3. Lucrative Returns
Over the years, energy investments have provided sizeable returns to investors. The Energy Select SPDR ETF, which represents a range of oil firms, has exceeded the Dow Jones Industrial average by more than 200 percent for the past 15 years. Moreover, prices are projected to increase in the future, which will help enhance returns for investors.
4. Diverse Investment Options
Apart from traditional energy investment avenues, like oil and gas, energy investors have a range of other options, including coal, nuclear energy, or even emerging green energy technologies. Oil and Gas investments are currently an extremely profitable investment avenue but should also be diversified with other investments to limit the exposure to risk. With that being said, other alternative energy investment options like coal or wireless electricity can be something to help diversify your energy investments as a whole.
5. Emerging Avenues
Investing in renewable energy is the new favorite among qualified investors. As governments come up with tougher regulations in an effort to combat global pollution, the demand for green technologies is set to significantly increase in the near future. Investing in this emerging industry can help you realize substantial returns and enable you do your bit towards promoting a greener and more sustainable environment.
6. Sustainable Demand
We’re surrounded by machines that require gas and other sources of energy to operate. An ever increasing population means the situation is not going to change any time soon. The demand for energy sources will increase in the future powered by rising economies such as China and India as they realize their growth potential and goals. According to some estimates, global oil consumption will increase to 100 million barrels per day by 2035, making it one of the most promising investments available to investors today.
7. Attractive Tax Breaks
Investing in energy can help you realize substantial tax gains in the U.S. You stand a chance to save up to 90 percent in tax payments in the first year. At FigTree, we have a track record of managing a range of energy investment projects. We can suggest multiple investment avenues to help diversify your investment portfolio, which is one of the most effective strategies to mitigate risk and pave the way for substantial future returns.
The ever-increasing energy demand is opening up various energy investment opportunities, enabling investors to draw great returns and diversify their investment portfolios. Investors, however, need to partner with a reputable energy investment firm that can connect them with promising opportunities and help them achieve their investment goals. At Fig Tree Capital Ventures, we manage a number of energy investment projects in Oklahoma, North Dakota and Texas, and can help you take the right steps towards achieving your target ROI goals. To learn more, fill out our contact form or call us at (866) 300-1885.