There are many ways for investors to participate in oil and gas investments to reap huge returns. Investors looking to acquire shares in oil companies or funds that own oil and gas companies need to familiarize themselves with the different types of oil and gas operations. A direct investment company in Texas such as Main Oak Capital can help you navigate the different available oil and gas investments and connect you with lucrative options that meet your investment profile. Let’s take a look at the different types of oil and gas companies.
Oil Exploration and Production Companies
The initial steps of the oil and gas supply chain, known as the upstream, feature companies that are involved in oil and gas exploration and production. This covers activities such as purchasing land and mineral rights and looking for oil and gas deposits. Exploration companies can make massive profits if they find oil and gas deposits on the land that they buy but can also make huge losses if their hopes of finding oil and gas deposits are not realised. Production companies target land that has already been identified as containing oil and gas deposits. They develop the land and oversee the extraction of the oil and gas. Some companies may do both, exploration and production.
Oil Transportation and Storage Companies
The transportation and storage of oil and gas belongs to the midstream level of the supply chain. Companies at this level transport oil and gas to refineries and also provide storage using pipelines, oil tankers, and even warehousing.
Oil Refining and Sales Companies
The refining and sale of oil and gas products belongs to the downstream level of the supply chain. Companies at this level make useful products from oil and gas and sell them to consumers and other companies.
Integrated Oil Companies
You will also find companies that are involved at multiple stages of the oil and gas supply chain. While being complex to run, they have the potential for higher profits when compared to companies at just one level.
Wrap Up
Investing in energy positions you for potential high profits. You can choose the level at which to invest based on considerations such as your risk profile and investment goals. Our direct investment company in Texas gives you access to vetted oil and gas investments and green technology investments. Call (972) 544 1883 or email info@mainoakcapital.com.
