5 Red Flags When Investing In The Energy Sector

5 Red Flags When Investing In The Energy Sector

Investment opportunities in the energy sector are immensely popular thanks to the attractive returns and benefits on offer. While it is highly recommended for qualified investors to invest in the energy sector, there are some red flags with which you must be familiar. This blog shines the spotlight on five major red flags that you must be on the lookout for when investing in the energy sector.

1. Opportunities Focused On Highly Publicized News

Anyone offering investment opportunities that seem credible due to some highly publicized news deserves a greater degree of scrutiny. Fraudsters keep themselves up-to-date with the latest energy market-related news and twist stories to make them add value to their scam ideas. If a news story is the center of attraction about an investment opportunity in the energy sector, don’t go for it, or do some further research!

2. Pitches Claiming To Be “Can’t-Miss” Opportunities

Although the energy sector offers amazing returns and a host of other benefits, it has its own share of risks. If you are offered guaranteed returns or there is mention of a “can’t miss” opportunity, it is highly possible that you are potentially being targeted by a fraudster. There are no completely safe opportunities when it comes to energy investing and anyone that makes such pitches should be avoided without a second thought.

3. Unsolicited Offers

If you find yourself the recipient of details about energy investment opportunities that you haven’t requested, always exercise extreme caution. The best way to avoid spam emails, faxes, and voice messages making such offers is to not open them at all. While it is highly recommended to avoid opening such emails, the one thing you must never do is open attachments or links sent with such emails. Not only do they lead you to fraudulent energy investment firms or opportunities but can potentially hack and/or harm your device through virus attacks that compromise your personal and financial information.

4. Limited-Time Opportunities

If there is ever a “limited time” clause on an investment opportunity, it is best to stay away. Such clauses are a big red flag and investors are strongly advised to beware of this fraudulent trick. The objective is to provide you with a mind-blowing opportunity in a way that compels you to invest without exercising due diligence. You must avoid making rash decisions when it comes to energy investing and rather, conduct thorough research about each project.

5. Huge Return Rates

Promising huge returns is another master trick used by scam artists. They attract potential investors with the assurance of generating exceedingly huge returns. Energy investment analysts and firms as well as experienced investors strongly advise comparing such claims with the current stock statistics of prominent companies in the market. While such offers make big claims of amazing returns, you can potentially end up losing the money you invest. Take your time with such investments and do your research to decide whether or not to invest in the project.

Also Read: A Guide to Invest in Upstream Oil and Gas Projects


While becoming a successful investor in the energy sector isn’t very difficult, it helps to work with one of the leading energy investment companies. That way, you can steer clear of all scams that target potential investors. When planning to invest in the energy sector, our team of proficient professionals at Main Oak Capital is guaranteed to help you find the best energy investment opportunities in the market. Call (972) 544-1884 to get answers to questions about investing in the energy sector. You can also email info@mainoakcapital.com or fill out our Contact Form and our experts will contact you at the earliest.