The economic downturn in recent years in the United States made a whole lot of investors far less confident about putting their capital out there for possible growth. Many people took a huge beating and lost a huge chunk of their life savings in 401Ks and other investment vehicles. Real estate – which has always been thought of as an extremely stable investment in the United States – plummeted due to the plethora of bad loans that had been made in previous years. As recovery looms around the corner, many individual investors may be a bit shy about taking risks. Texas oil and gas investments, however, were not greatly affected by the economic recession, and remain a stable commodity.
Texas oil and gas remains high in demand no matter what the economy looks like, and is an investment that offers the benefits of both long-term opportunities as well as short-term liquidity. Monthly cash flow dividends are offered to investors during the period of production while the initial investment is simultaneously being recouped. An investor therefore might make back his initial investment in a couple of years, as well as benefit for many years from cash flow that results from production on successful wells.
The primary factor that makes Texas oil and gas investments so stable is the fact that demand is intense, and supply is limited. In the U.S., consumers are not flocking to alternative sources for fuel because they are not readily available. Moreover an overhaul of the economy in order to accommodate alternative energy sources, which as yet are not technologically viable is not something that is likely to happen in the foreseeable future. Moreover, the federal government offers generous tax incentives as a way to motivate investors to develop new wells and lessen dependence on foreign oil, a policy that even a President such as Barack Obama supports.
Of course, all investments contain an element of risk, and if anyone oversells a product or commodity by claiming that there is no risk involved at all, they will likely be able to sell you the Brooklyn Bridge if you are willing. The fact is that even Texas oil and gas has inherent risks which should be minimized and offset as much as possible. Tax incentives are a huge boon to offset risk, but so is doing all your research before you put your capital in any specific company, and diversifying the kinds of Texas oil and gas investments that you make. Wildcatting is a lucrative gamble that should be offset by investing capital in existing fields that perform well.
Fossil Oil Company, LLC is an independent oil and gas exploration and production company whose management and consultants collectively have more than 130 years’ of investing in Texas oil and gas. It’s no secret that oil and gas are two of the world’s most valued commodities. But, in order to profit from them you need to find new opportunities to enter the fast-moving industry at ground level. That takes experience and know-how. Visit www.fossiloil.com or call: Office: (713) 978-7986 | Toll Free: (877) 822-5802
