Expansion of new projects linked to shale gas in the US oil and gas industry is attracting an increasing number of investors from around the world. Today, energy investments have become an alternative direct investment solution that provides significant tax benefits, shows huge potential for monthly cash flow and asset appreciation. If you too are interested in oil and gas investments but have your share of doubts and questions, in this post, we clear the air by answering some of the most commonly asked questions about energy investments. Take a look.
1. What are direct investment opportunities?
When it comes to investing in oil and gas, most people turn to purchasing shares in multinational oil companies such as EOG, Exxon, Comstock etc. Though these names have been around for eons, they promise limited returns as there are multiple parties involved and the price fluctuation is rarely significant enough for investors to make any large profits from trading. Direct investments, on the other hand, allow investors to directly put their money in oil and gas projects and realize much higher returns.
2. Do energy investments have any tax advantages?
Tax rebates are one of the biggest perks of investing in oil and gas. In fact, it would be safe to say that a lot investors who put their money in an energy investment do it for the “exclusive” tax benefits it entails. The actual benefits, however, depend on the type of investment, with the options being “partnership,” “royalties,” “stocks,” and “working interest.” You can learn more about the exact tax benefits of each of these options in one of our older blog posts that covers the subject in detail.
3. How to ensure my money is profitably invested?
Though there is no foolproof way to ensure your money is invested in profitable wells, for starters, make sure that the investment company you partner with has a consistent track record of delivering good returns to investors and has an in-house team of experts to identify the best opportunities out there. FIG Tree, for instance, has a team of surveyors and analysts who come together to assess the profit-making potential of different energy projects, and pick only top contenders to be presented to our investment partners.
4. How do I qualify for direct investment opportunities?
As investing in oil and gas opportunities can be somewhat risky, the federal government, in most cases, requires that potential investors have net worth over $1,000,000.00 excluding any homes and personal vehicles, or an individual income over $200,000.00 (or a joint income over $300,000.00 with my spouse) in each of the past two years with the expectation of reaching the same amount in the current year. On how to become an accredited investor, you can read one of our older blog posts here.
5. When should I start investing in oil and gas?
Though much has been said about the evolution of renewable energy, we are still decades away from the point where it might overtake any conventional resources. Until that time comes, pretty much any day is the right time to start investing in oil and gas. Since the discovery of these precious commodities, energy investments have been among the favorites of qualified investors and nothing seems to be changing anytime in the near future.
With an ever increasing demand for energy across the globe, there is a strong oil and gas marketplace for new potential investors to diversify their portfolios. If you too have been looking for new avenues to put your money to work, there aren’t too many options that come close to oil and gas, at least as far as sustainability and potential profitability are concerned. To learn more about direct energy investments, feel free to connect with one of our investment consultants. Simply call (866) 304-9194 or fill out our contact form and we will take it from there.