You're probably asking yourself of why invest in oil, knowing that it is a category of your portfolio that requires tremendous work.

But, If you’ve read this far, you likely believe that adding access to a commodity from the point of extraction would be a solid addition to your portfolio. And, you’d be right! Crude oil being owned at the point of extraction can be a very lucrative addition to your investing portfolio. So, why invest in oil?

You’re using science.

  • Why Invest in Oil  When you invest in the most recent photo sharing application or the most recent social network, you’re not investing using science.
  • Why Invest in Oil  Oil investments are the result of the application of the scientific method.
  • Why Invest in Oil  A geo-scientists hypothesis about the existence of oil deposits trapped thousands of feet underneath the surface of the earth.
  • Why Invest in Oil  Tests are run, existing well results are researched, and the hypothesis is tested using available datasets.
  • Why Invest in Oil  It is only until the scientific method has been exhausted that new oil wells are sought to be drilled and investors are given the final investment opportunity.
  • Why Invest in Oil  The ability to use science to gain a bigger picture and reduce risk in your investment is a key reason to invest in oil and gas and crude extraction.

 

Deals can be structured to reduce risk.

  • Why Invest in Oil  After the scientists vet the project, the transactional lawyers can further mitigate your risk.
  • Why Invest in Oil  An oil deal is a thinking man’s game (or, a thinking woman’s).
  • Why Invest in Oil  There are a myriad amount of ways you can be taken advantage of based on the structure of the deal. However, there are also a number of ways that you can shift the playing field to your advantage and reduce risk in the oil investment.
  • Why Invest in Oil  Proper contracts can reduce risk by making payments contingent on meeting project benchmarks. Oil investments can be made in distressed assets in deals that require the operator to obtain a loan on the property, allowing for a multiplier effect on your capital if the oil investment is structured smartly.

The culture of the industry requires greater returns.

  • Why Invest in Oil  A banker has basically knocked the ball out of the park if he can guarantee ten percent returns.
  • Why Invest in Oil  An oil and gas operator would be out of business making ten percent his standard return amount.
  • Why Invest in Oil  The image of Spindletop gushing oil and making instant millionaires out of oil investors has been deeply ingrained into the psyche of the industry.
  • Why Invest in Oil  Oil investments target larger returns.
  • Why Invest in Oil  But, by turbo-charging the ability of the investor to diversify, EnergyFunders allows investors to place smart investments in the oil industry.
  • Why Invest in Oil  It is true that oil investments have traditionally been riskier.
  • But, real estate can crash. The stock market can crash. Most start-ups fail. Companies go bankrupt all the time.
  • Why Invest in Oil  No one is advocating abandoning traditional investments. Because all investments carry with them the possibility of risk, that’s why you diversify.
  • Why Invest in Oil  Oil investments are no different.
  • Why Invest in Oil  But, now, you can obtain proper diversification in oil and gas. It’s a great amount of upside, tempered by the new unprecedented level of deal flow and diversification enabled by the EnergyFunders platform.

 

Follow these rules to win:

  • Why Invest in Oil  Pick projects that can be successful without high prices.
  • Why Invest in Oil  Diversify, diversify, diversify across many oil wells, assets and operators.
  • Why Invest in Oil  Invest directly into the oil well.
  • Why Invest in Oil  When oil prices decrease, invest smarter to reap rewards.
  • Why Invest in Oil  Don’t let a pamphlet satisfy your due diligence.
  • Why Invest in Oil  Cut out the middleman.
  • Why Invest in Oil  Demand the transparency you deserve.
  • Why Invest in Oil  Don’t go it alone. Get aligned with quality oil and gas professionals.

With EnergyFunders, you’re aligned with a strong multi-disciplinary team of professionals who only win if you win.
Our profit is from a carried interest in a successful project. If you’re ready to start winning in oil and gas, together, get started now.

 

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Or, keep reading on how to invest in oil and oil investment opportunities.