Selecting Among Opportunities in Energy Investing

Oil and energy investing can get complicated because there is a multitude of opportunities that exist. It is difficult to keep track of where the industry is headed. Although many countries are trying to reduce their dependence on oil, some investors are experiencing high gains with stocks in oil and related companies. Oil is still the most widely used fossil fuel for power. Suppliers of drilling materials, companies that transport the product, refineries, and storage facilities are a few ways to invest in oil and natural gas with lower risk than is associated with specific oil companies. The profits of companies on the periphery are not tied directly to the price per barrel of the actual oil.

An increase in fracking for shale oil and natural gas is another opportunity for investing. The National Association of Royalty Owners indicates that twelve million Americans are currently receiving regular royalty checks from the industry. Those with land sitting on shale deposits are making a huge amount of money, as are investors in companies that prepare the land and do the extracting of the product. Chemicals, sand, or water are injected by excessive force and pressure deep into rock formations to fracture them. At that point, oil or gas can flow out of the rock and is extracted via piping and pumps. More deposits are still being discovered.

Solar and wind energy is utilized to a lesser degree, but that is only due to storage issues. Companies are currently rushing to develop batteries that have the capacity to store power to use when the sun does not shine, or the wind does not blow enough to move a turbine. Start up companies are also working on a solution. Investing in some of those can potentially result in high gains. The 2012 JOBS Act allows companies to sell shares to up to two-thousand investors without becoming public companies. Investors can learn the names, progress, and opportunities that exist with some of those start-up companies here. Membership to the website translates into information overlooked by general investment advice sites. Review the success rate of previous recommendations to determine if the membership will help achieve personal financial goals.