Every investor hopes to put their money in investment opportunities that can deliver high returns. If you too are looking for such opportunities, energy investment programs represent a potentially high-return option. With the promise of long-term cash flows, significant tax benefits, high ROI potential, and portfolio diversification, direct investments in oil and gas can help you meet your investment goals. However, before you start exploring oil and gas investment options, it is important to have a basic understanding of the different types of oil and gas projects. Continuing the discussion, this blog covers the three of oil and gas investment projects that are part of energy investment programs.
Exploration
Exploration is one of the most profitable types of oil and gas projects in which you can invest. You invest in a well calculated and researched project that drills in a location that may or may not have oil or gas reserves. The returns, however, can often be surprising; sometimes, up to ten times of your investment! It is, however, important to note that potential losses can also be unexpected and substantial. This type of oil and gas investment option is best for those who have sufficient capital to bear risk for losses.
Existing Reserve
Investing in existing reserve projects is another way to get started with oil and gas investments. With this investment option, you invest in a property that has proven oil or gas reserves. This investment option has the least amount of risk as there is no guesswork involved in investing in such reserves. Investing in existing reserves is considered a long-term investment plan and can be a great source to generate a passive income.
Developmental
Developmental oil and gas projects represent the midway between existing and exploration reserves. Investing in developmental projects provides greater returns than investing in existing reserves, as drilling has not yet started. On the other hand, it also removes the hypotheticals that surround the exploratory model. For most investors, this type of oil and gas investment programs have less risk and have a promise of long-term returns.
Warp Up
Before investing in any oil and gas programs, it is advisable that you understand the risks involved. It is, therefore, necessary to partner with a firm that provides direct investment opportunities in the oil and gas industry and can help guide the way. FIG Tree Capital Ventures, equipped with extensive experience in the development of oil and natural gas fields, is one such name. We can lead you to potentially high-yield investment opportunities that diversify your portfolio and can deliver high returns. For more information, email us at info@figtreecapitalventures.com or simply call (866) 304 9194.
