Tuesday, June 18, 2013

Looking For the Best Oil & Gas Companies for Investment? Here Are Some Ideas!!!

An assortment of United States coins, includin...
(Photo credit: Wikipedia)
These days it seems everyone is interested in investing in oil and gas companies. The strategy is shared and very common amongst all who want to indulge in tax deferred investments. By doing so, one can now invest the money which would have been taken by the government, into something that would bring home returns. 

Some choose to pay for charity or donate that extra to avoid large tax amounts, but tax deferred investments actually help an individual make more. This is why investing in oil and gas companies across the nation have become such a rage amongst investors these days. But before you jump the gun and cut a cheque, know what risks are involved and use these tips wisely to make the most while the wells are drilled.

Check the company’s portfolio


This would help you decide if you want to deal with large or small medium companies. And it would further help you choose private or public enterprises to invest in. Once this is done, check the investment strategy and be determined with it. Your expectations should be borne in mind, but don’t forget that there are many risks along the way too. Higher profits come along the way when higher risks are taken. This means your money is at stake, and every investment would need minimal risks involved to have profits too.

Check the company’s credentials and history


The history of the company should be long and stable. Financially it should be diversified and there should be a strong team to help with risk management too. Ask them for reports and papers that prove their credentials.

Contact the companies one by one


Go to their websites and fill out the enquiry form. They would then send you prospectus and brochures through snail mail or in PDF forms. Before you think of investing in any oil and gas investment, it is mandatory for you to qualify as one. You have to be an accredited investor before any investment from your end can be made. Check resources online to learn more on what it takes to be an accredited investor.

Licensed professionals only


For appraisals on the net value of the investment being made by you, only a licensed and well certified petroleum engineer should be taken into confidence. He or she should have an exit strategy set-up for you in place. This would ensure while the holding period is on, liquidity is well managed.

Check Better Business Bureau


It is important to check for oil and gas companies in the US, since this site would bare the ugly truth about companies that claim to make your rich. If there are frauds and scams happening around, investors who have suffered the same shall post their grievances and will inform others about it too. Any company with unresolved issues from the past should not be thought of as a favourable investment platform.

Guarantees on any investments should not be made by any company dealing with oil and gas production, exploration or drilling. If there is a company that emails and tell you so, please don’t fall for it. It is on the basis of speculations where oil and gas investments are thought of and made. This could lead to major profits or losses, only time would tell. Since the prices for oil and gas has not been stable over the recent past, it would thus be wise to use your due diligence and then decide on such investments.

Author Bio
Take a look online at the various resources available on oil investing. Learn more on how you could make the best out of small and minimal investments, says Lily Noronha. There are risks involved in the oil and gas industries too. Play it smart and do your homework well, this would bring in the profits you so look forward to.


No comments:

Post a Comment

Join 1000's of People Following 50 Plus Finance
Real Time Web Analytics