Oil is one commodity that is watched closely by investors across the globe and can make or break governments and economies. When U.S. underwent a political change in November 2016, the position of the U.S. at a global level and its energy potential was one topic that took center stage. While Obama’s government was sensitive towards climate change and increased regulations on the energy sector, Trump promised that every new regulation will replace two existing regulations, something that we believe will impact the energy sector the most. Donald Trump also promised to make the U.S. an energy independent nation. Given the current economic and political scenario and campaign promises made by Trump, investing in oil and gas could be very rewarding. Still not convinced? We give more reasons why investing in the energy sector in today’s economy makes more sense than ever.
Enormous Reserves and Fewer Regulations
During Obama’s reign, the cost of doing business in the energy sector was high because of increased regulations. The U.S has enormous reserves of oil and gas, and less regulations in the energy sector means lower production cost with an increased output. Besides this, the technological advancements such as fracking and horizontal drilling have increased the production of oil and gas as well. The cost involved in the overall production is expected to further decrease in coming years with the output predicted to increase, which might take the U.S. closer to being a more energy independent nation.
Rebuilding the Infrastructure
The Trump administration promised to rebuild the aging infrastructure including roads, airports, and bridges, which would create jobs. Such a mass-level rebuild will require ample raw materials, so the demand for metals, energy, and minerals will rise in coming time. Infrastructural developments are likely to benefit the economy, and if GDP rises, the demand for oil will increase, and so will its prices.
Oil and gas is a necessity in every nation around the globe. If you are exploring investment options that can deliver promising returns in the long run, consider oil and gas. Our blog post on IEA’s prediction in 2017 will give you more reasons to invest in energy sector. For those who have already made up their mind, FigTree Capital Ventures LLC is here to guide you with making educated oil and gas investments decisions in the U.S. Give us a call at (866) 300-2170 and our investment experts will be happy to assist you.