- July 21, 2019
Improved methods and technology have enabled energy companies to drill into proven and developed oil fields and discover new ones more efficiently. As the industry promises high returns owing to the constant increase in demand, there has been a substantial increase in the number of investors turning to oil and gas drilling investments. Apart from high returns, oil and gas investments also entail great tax benefits for investors and also diversify their investment portfolios. While you can always count on a trusted energy investment firm such as Fig Tree to provide the best oil and gas investment opportunities, you too must know what you are getting into. On that note, we present to you all you need to know about oil and gas drilling investments. Read on.
There are several opportunities available for you as an investor, which include direct and indirect investment programs. Talking about the oil well industry, there are several exploration and production companies that locate oil and gas reservoirs and drill wells to extract resources. As an investor, you must be familiar with the industry, its production potential, and the kind of current exploration activities before making any investment.
While you can always partner with an energy investment company such as Fig Tree that can guide the way, you can start by researching to get an idea about the industry, the competition existing in the field, and the characteristics of potential investment opportunities. Notably, oil wells are usually long-term investments and you will need the patience to see the returns as the oil well take months to set up, followed by the long drilling process.
Direct Investment in Oil and Gas
Investing directly in oil wells is definitely a more focused approach towards oil and gas investment. You have two options: ‘Working Interest Ownership’ and ‘Limited Partnership Ownership’. In the Working Interest Ownership model, you own a part of the oil well, but have more responsibility.
In the Limited Partnership Ownership model, the working interests get wrapped together, often delivering a higher ROI. In this model, however, investors incur the management and backend costs. A prominent energy investment company such as FigTree can help you in finding the most promising oil and gas investment opportunities with assured returns and great tax benefits.
When it comes to choosing oil and gas investments, it is necessary to understand the various types of projects, their feasibility, and the parties involved. That is why investors must take their time to conduct a comprehensive initial research or speak with one of the energy investment consultants at Fig Tree Capital Ventures. To learn about the top oil and gas investment projects in the US, fill out this form or call (866) 300-2170.