Things you need to know on How to Invest in Oil and Gas
You are here because you are looking for information on How to Invest in Oil and Gas — Investing directly in the oil and gas well used to be a really clunky, burdensome process. Lots of people have historically just given up and invested in oil and gas companies on the stock market.
But, when you simply invest in companies on the stock market, your revenue – if there ever is any – is realized after companies CEO’s are paid, after an army of corporate bureaucrats are paid, and after a swanky corporate office rent is paid, after corporate retreats, after… well, you get the idea.
— The only revenue generation of a publicly traded oil and gas company is the assets of the companies.
— The wells is where the money is.
— Everything else is an expense.
Investing in the well.
— It used to be you had to listen to a hundred different pitches.
— Perform due diligence on a hundred different projects.
— To really perform due diligence, you had to get feedback from your network of oil and gas lawyers, geologists, and engineers.
Oh, you don’t have that network?
Well, you first have to build one before getting serious about investing in the well. It’s absolutely critical to be aligned with a like-minded group of professionals before jumping into oil and gas investing.
If you’re reading this, you already know you need to be diversifying, diversifying and diversifying in transparent deals that you can understand.
Given the enormous work just to vet one project, it’s clear you can’t be going it alone in the world of oil and gas investing and expect to properly diversify into good projects with transparent and fair deal structures.