Natural gas can be a unique way to diversify your investing portfolio into an area that offers strong returns. Natural gas can be a by-product of oil investing, or it can be targeted along with oil production in a specific well, but it can also be a stand-alone objective of energy production. In areas like the Eagle Ford shale that are oil rich, there are portions of the field that don’t possess natural gas pipelines. In these areas, natural gas is a wasted by-product of oil production. But, in many regions in the U.S., natural gas pipeline infrastructure is abundant. Natural gas is targeted for investment dollars alongside oil in the same wells, or gas only wells are targeted for capital development using investor dollars.
Like stand-alone oil wells, natural gas investments carry with them a high degree of risk. The goal when seeking to produce natural gas, like when seeking to produce oil, is to reduce risk associated with exploration and production activities while maximizing exposure to revenue generating projects that can potentially generate a very strong return on investment.