Oil Crowdfunding and the Economy of Sharing
If you’ve been searching for the next Uber, you may discover you should have been looking just a few thousand feet below the earth’s surface.
Uber, of course, is the crown jewel of the new sharing economy ushered in with great fanfare and multi-billion dollar corporate valuations. Now, everyone wants to be the next Uber, Airbnb, Lyft or DogVacay (the Airbnb of doghouses).
Now, What Does This Have to Do with Oil and Gas?
What you have to understand about the sharing economy is that there’s one major similarity between ride sharing, renting out an extra room and dog sitting. Each makes use of an unused asset, whether a spare room, idle car or extra doghouse space.
We can’t predict next Uber, unfortunately (because then we would be on an island somewhere). But we can tell you to focus on finding value in previously unused, unmonetized assets.
Are You Saying Crude Oil Is an Unused, Unmonetized Asset?
Yes. Hear us out.
The world is flush with oil and gas reserves. If you think oil is a deal breaker, you should read up on why you can win in any price environment when you invest in crude oil.
Why Is Oil and Gas an Unused Asset?
A fact of life in the oil patch is that the big fish can get projects financed at will. They are publicly traded on major stock exchanges.
The big fish also have to acquire huge assets to keep going, to keep replacing the reserves they are using up. The bigger they are, the harder it is to replace reserves. They can only focus on billion-dollar assets and up.
That’s a lot of room for smaller operators who are skilled in geology and engineering. They have plenty of opportunities to identify smaller opportunities to invest in crude oil that pay handsome rewards that are too small for the major oil companies to touch.
There’s sometimes lots of oil left in the rocks that major oil companies leave behind.
But, smaller operators who are skilled at geology and engineering often have difficulty securing financing.
There’s a lot of reasons why, but it’s pretty similar to why a guy renting a room on Airbnb had trouble finding customers before Airbnb. A guy who has a room to rent may not have the ability to find the customers. A person who can put together a great oil and gas prospect may still have difficulty finding backers.
It’s an age-old problem that sharing economy companies seek to fix.
Oil Crowdfunding: What You Should Know
At EnergyFunders, we’re applying the sharing economy concept to oil crowdfunding. We might not be the next Uber, but we’re going to give our accredited investors access to deals that otherwise wouldn’t be on the table. Just like with that gorgeous villa on the Mediterranean that you rented through Airbnb, you’re going to get deals to invest in crude oil that don’t exist anywhere else. It’s the sharing economy.
How Do You Know Which Project to Pick When You Invest in Crude Oil?
The EnergyFunders platform expedites the process of finding equity crowdfunding projects that need investors, but how do you know who to invest in?
We vet all the projects. We know reading the regulations, contracts and details is a full-time job. That’s why we take care of it. We eliminate projects that don’t meet our criteria — and we give you all the information about the ones we do pick so you can select only projects that are right for you.
Once you decide to participate, you can sign up and pay online. You don’t even need to be at your computer; you can do this on your tablet or phone.
So, Who’s the Next Uber?
If you keep focusing on unearthing and monetizing unused assets, you’ll be a lot further along in answering that question.
In the meantime, we invite you to stay awhile and find out about the unused assets and projects we present on the EnergyFunders platform and learn how you can monetize those assets to your benefit. Create an account to view our investments with top-tier operators.