Investing in oil
and gas in the past has always been high risk/return with many
conservative investors staying out of the sector altogether.
With the huge rise in the price of oil over the last few years
and only marginal increases in the cost of production, the risk
factor seems to be diminishing while the returns are starting to
multiply. Listed below are some of the benefits of investing in
the oil and gas industry.
Drilling is the
very best tax advantaged investment. (Newsweek)
excellent tax breaks to individual investors.
deductible ... Up to 84% can be written off in first year.
allowance on Revenue.
prospects are better than ever.
small leases as individual operators opt out of the business.
Investors have opportunity to invest in less expensive and less
The big money has
gone offshore and overseas, because there are too few
easy-to-find big oil fields remaining.
Over 10,000 oil
cos. have left the arena since 1982 when oil prices crashed.
can move rapidly to cease opportunity while large corporations
are busy off shore.
domestic drilling with special tax breaks.
gas usage over oil and coal.
Natural gas is now
is doubling about every 10 years.
U.S. oil stock
piles are at 27 year low. (14 days of domestic consumption)
China is the
world's second-largest consumer of oil. It has about 20 million
cars and trucks now. By 2020, that figure is expected to be 120
US output is at a
36 year low
Over two-thirds of
domestic oil wells are classified as marginal (avg.3 bpd)
Imports are now
over 60% (imports were 30% just before oil embargo).
Oil Prices are
predicted to rise above $ 128 next year (www.oil-prices.net)
expected to remain firm for the next ten years.
replacement for oil in the near future is seen.