Last updated 4 months ago
When deciding on an energy source to invest in, todays popular choices include oil and natural gas. Despite the current spotlight on natural gas, oil investment is still and always will be one of the best investments to make. Read on to find out why:
Tax Deductions
In an effort to attract private investors in this industry, the U.S. government has introduced a vast number of tax incentives that can be applied to all investments and subsequent returns on oil wells. Given the huge profits that can result from successful investment, the amount of money that these incentives will keep in your pocket could easily amount to five figures or more. This makes oil and gas investments a very valuable tax shelter.
Attractive Returns
Oil investments are known for having very high return rates. With oil being costly and always in demand, it is not unreasonable to foresee a return five to 10 times greater than your initial investment. No matter how much you invested in your well of choice, you will continue to receive cash for as long as the well produces oil, be it a year, five years, 10 years, or the rest of your life.
Good Outlook
While demand for oil can fluctuate based on a number of factors, including price and availability, oil is forecasted to continue to be a high-demand asset well into the future. In addition, oil is much more valuable than natural gas. With every new energy source, new technology needs to be developed to harness it. Because all the technology needed to find, extract, and produce oil has been in use for decades, oil is also much less expensive to access than natural gas.
Aegis Oil invests in ventures with credible, well-researched goals and outlooks. Call us at (888) 927-3563 for more information about oil investing.
Last updated 4 months ago
In the early 1980s, the Permian Basin seemed to have exhausted its supply of oil, forcing investors to turn elsewhere. Although the region lay untapped for many years, it has recently attracted a great deal of interest, thanks to new technology that provides access to deep reserves. Here are some of the factors contributing to the success of the Permian Basin oil industry:
Reduced Risk
For many years, drilling for oil was a risky venture, as there was little guarantee of an easily accessible and plentiful reserve. However, with modern oil extraction techniques such as hydraulic fracturing and horizontal drilling, obtaining oil is easier and much more likely, making for steadier investment opportunities. With the risk of investing minimized, many people are turning once again to this industry, enabling the continued development of effective drilling techniques.
Elevated Oil Prices
The value of oil has been increasing steadily since 2008 and is projected to rise even further in the coming year due to economic recovery in major oil-consuming countries. The Permian Basin is poised to take advantage of favorable market conditions, due to its large reserves that are now accessible to oil producers.
Enduring Infrastructure
Unlike other thriving regions of oil production, the Permian Basin is equipped to handle an enormous output. Scalable methods of transporting the oil already exist, enabling production companies to efficiently capitalize on new reserves.
Economic Stimulation
With an increasing demand for oilfield service workers in the Permian Basin, the area’s unemployment has dropped dramatically. In response, real estate prices have increased, and tiny neighboring towns are experiencing major growth. The resulting sales tax revenue is boosting city improvements, making the area even more attractive for workers and investors alike.
Aegis Oil is focusing on lease acquisition in the Permian Basin as well as other promising West Texas regions. Call (888) 927-3563 or contact us online to learn how you can become a part of our lower-risk ventures.
Last updated 4 months ago
To learn more about investing in the oil and gas industry, take a look at these informative online resources or contact Aegis Oil today at (888) 927-3563.
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Learn why the global demand for oil is expected to rise next year by reading this article from The Guardian.
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Learn how oil is formed, found, and extracted by exploring this informative slideshow from HowStuffWorks.com.
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For a thorough explanation of the oil drilling process and the terminology of production, read this Investopedia.com article.
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The Economist explains why new oil-drilling techniques developed in the U.S. are placing it at the forefront of the international market.
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Learn about the beginnings of the oil investment industry by reading this article from DailyReckoning.com, which covers the drilling of the first oil well in 1859 and the market crash that occurred during the Civil War.
Last updated 4 months ago
As an investor, there’s nothing better than the potential for low risk and high reward. The recent Texas oil boom has companies, businesses, and individuals scrambling to take advantage of the exciting opportunities in U.S. oil. With the huge and sudden growth in Permian Basin oil production, there has never been a better time to diversify your portfolio.
Discover more about the growth and investment opportunities emerging from Texas’s Permian Basin by looking at this infographic from Aegis Oil. Be sure to share this with your friends and business associates!
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Last updated 4 months ago
In order to determine which oil and gas ventures are the most lucrative, an investor must understand how the drilling process works and which factors influence production. Read on to learn how oil and gas are detected, extracted, and refined in preparation for distribution
Discovering Hydrocarbon Reservoirs
Deposits of crude oil and natural gas, collectively known as hydrocarbons, are found below the earth’s surface and can be detected through aerial photography, gravity and magnetic field measurements, and seismic surveys. Oil and natural gas production companies are constantly on the lookout for additional reserves, as each reservoir contains a finite amount of hydrocarbons.
Drilling Wells
Upon identification of a hydrocarbon deposit, a well is carefully drilled using sophisticated equipment. This serves to maximize the amount of oil or natural gas obtained while reducing the impact on the surrounding land. Occasionally, few or no hydrocarbons are revealed, in which case, the drilling site is known as a “dry hole” and a different source is pursued.
Producing Oil and Gas
Once the hydrocarbons have been extracted, they must be purified in preparation for sale. The process of refining crude oil involves separating out the different types of hydrocarbons it contains into products such as petroleum, gasoline, kerosene, and motor oil. Natural gas processing mainly entails the removal of gases other than methane. These products are then sold by volume, with natural gas measured by the cubic foot; one barrel of crude oil will contain 42 gallons.
Investing in the production of oil and natural gas can be extremely lucrative, as efficient drilling techniques and global demand combine for high returns. You can capitalize on this tax-deductible venture by calling Aegis Oil at (888) 927-3563. We are currently scouting new reservoirs in the West Texas Permian Basin, a promising area for oil investment.