Although 2020 was a tough year for almost all industries, despite the setback, the energy investment industry fared fairly well. On one hand, the inrush of oil and gas investment opportunities continued to grow; on the other, renewable energy investments grew at a similar rate. Having said that, getting started with energy investments can be clouded with a number of questions and concerns, especially if you are just starting out. That is when investors need a trusted energy investment partner, such as Main Oak Capital. To help you take the first steps in the right direction, in this article, we present some important facts every energy investor should know before starting with energy investment opportunities. Read on.
The US is the Largest Producer of Oil and Gas
A lot of energy investors misconstrue the Middle East to be the most promising place for their investments, as they believe Saudi Arabia to be the largest producer of oil and gas, which hasn’t been true for quite some time now. After overtaking Russia in 2018, the US left Saudi Arabia behind by the end of 2019, to become the world’s largest oil producer. In fact, Saudi Arabia is now the third largest producer of oil and gas, right behind Russia.
Energy Investments have Moderate Risks
A common misconception about oil and gas investments is that they are high risk, which is not entirely true. While energy investment opportunities, just like any other investment instrument, have their share of risks, the probability of things going south is still much lower compared to various other popular alternatives. Having said that, the success of your energy investments largely depends upon the effectiveness with which your portfolio is managed.
Texas is a Haven for Energy Investors
For those who are just planning to get started with energy investments, Texas can prove to be a remarkably promising ground. The state not only has the largest oil and gas reserve in the country (one third of the total oil reserves), it also has a number of active oil and gas projects offering a floodgate of opportunities to qualified investors. Studies show that nearly 36 percent of the oil production in the US is attributable to Texas.
Oil Demand is Unaffected by Renewable Energy
Though it is true that the world is gradually embracing renewable energy sources; that has, however, not brought in any notable changes to the global demand for oil and gas. That is because the global energy demand is increasing rapidly, which is almost counterbalancing the input offered by renewable energy. Having said that, it is advisable for energy investors to have a blend of oil and gas investments and renewable energy investments in their portfolio.
The Final Word
Energy investment opportunities can not only deliver remarkable long-term returns, they are equally effective as a short-term investment option. The success of your energy investments, however, depends upon the effectiveness with which your funds and portfolio are managed. That is where you can count on a trusted energy investment expert such as Main Oak Capital. To learn more about how we can help you multiply your wealth with energy investments, talk to us for a no-obligation consultation. Simply call (972) 544-1645 or fill out our contact form and we’ll get back to you as soon as possible.