Opportunities in Oil and Gas
Oil and gas investment opportunities in the united state normally refers to investing straight in expedition and production jobs in the lower 48 states.
The oil and gas investor targets oil and gas projects that drill brand-new wells or re-work existing wells.
Re-working happens when an oil and gas operator returns to existing wells for the purpose of acquiring added production in an existing zone, or to start production at a shallower zone, or even to drill down much deeper in the existing well. The bulk of the costs in an oil and gas project remain in the drilling down to total depth. Thus, by removing, or largely removing this expense, re-working opportunities can be profitable.
Traditionally, oil costs have always been significantly higher than natural gas costs, enabling the oil financier to find opportunities for considerable revenue in fields that have long since been passed over for much more rewarding fields– including offshore opportunities– by the significant oil business. A little oil and gas operator can create income to satisfy individual investors where a significant oil company can not create earnings in sufficient volume to satisfy shareholders.
The exploration and production process for natural gas is mostly the same as it is for oil.
Natural gas is a product that exists naturally in a gaseous state. Thus, pipeline transport directly from the well head is essential for a successful natural gas well. Absence of pipeline transportation of product will certainly force a natural gas well to be shut-in for lack of market.
With the greater facilities need demanded by natural gas projects integrated with the traditionally lower price of the commodity, natural gas jobs– i.e., drilling or re-working projects where natural gas, not oil, is the intended main product to be recovered– present an obstacle for financiers in energy investing.
Nevertheless, in existing natural gas fields, energy investors may not incur substantial costs in tying in the well to an existing pipeline and discovering an eager buyer for their item.
Investing in energy financier may also target natural gas with an eye to the future. As regulative obstacles are reduced and liquefied natural gas centers browse the web, natural gas as a product may see enhanced rates as foreign markets open. By liquefying gas, it becomes easier to carry and can be transported in tankers like oil, to enable the natural gas investor the ability to offer items to a foreign buyer at a higher rate than exactly what is readily available domestically.
Despite the future prospects of LNG, when natural gas exists at enough amounts when it lies in close proximity of an existing pipeline natural, natural gas drilling and re-working projects can be lucrative to the oil and gas financier.