As oil investors put a huge sum of money into oil wells that will hopefully provide generous returns, it’s entirely understandable how you can be plagued with concerns about getting your due return. After all, that’s your hard-earned money on the line. After so many years of experience in the oil industry, we’ve seen and heard the most common oil investor concerns. Some oil investors fear about not hearing back from the broker or the oil company after he provides his share, while others had to wait in suspense for the promised monthly paychecks to start coming in.
New Orleans Oil Investment Concerns
Also, so many investors are concerned about striking a dry hole even if the company has claimed stellar track record. While for others, investors experience “add-on” charges that were never in the agreement in the first place which cut into what was supposed to be their profit.
We understand that while there are many legitimate oil operators, there are also fly-by-night frauds that take great pains to appear entirely genuine. Sometimes, the two are indistinguishable which makes it hard to know where to invest your money. People who hear about investors getting scammed by the latter experience fear in investing in oil and concerns that they will never get their promised earnings or even lose their money in the process.
We believe that to validate and/or dash these concerns, potential investors need to educate themselves about the ins and outs of the oil investment industry. As such, we’ve compiled key insights about the industry in our Free Insider’s Guide to help you identify the tell-tale signs of a good and bad investment offer as well as other points to consider when performing your due diligence for New Orleans, LA oil & gas investing. The oil industry is a lucrative place to invest your money and the potential for returns are high.
However, if your concerns are still left unanswered, you’ll always be one step away from making the right decision.
Oil & Gas in New Orleans
The oil boom at the beginning of the 20th century transformed New Orleans’ economy nearly overnight. Being strategically located on the Gulf of Mexico with one of the largest ports in the nation, and dozens of oil rigs offshore, made New Orleans a major coastal and financial hub for the petroleum industry. The immense amount of oil being pumped through New Orleans’ port and refineries has led nearly every major player in the industry to set up a corporate or regional headquarters in the area.
Risks of Oil & Gas Investing
Risks are inherent in oil investments. You’ll never get 100% full assurance that you will receive the promised returns, nor will you have that same amount of assurance that you will strike a good well or a dry hole.
Some people are more tolerant to higher risks so they gamble on oil and gas investments. Others are too afraid of losing all their money, so they invest in more conservative vehicles like bonds and stocks. Although both are good options, knowing what type of a risk taker you are will help you decide whether oil and gas investments are right for you.
Some people are conservative risk takers. These people are happy putting a portion of their money in investments that yield them around 10% annually. While it’s true that you have the amount to spare for bigger investments, you are content with watching your money grow at a smaller, and more reliable, rate.
On the other hand, high-risk tolerant people are those who are willing to part a bigger sum of their money into investments and expect around 1,530% of returns. These people are also more willing in placing their eggs in more than one basket, therefore giving them multiple sources for ROI.
Investment Risk vs. Reward
Investing in oil will always be more risky than other investment vehicles, but they will also provide you better and higher returns than most. If you believe that you have the guts to take the plunge on oil investment, hopefully with careful due diligence, then you stand the chance of enjoying more lucrative returns from the well’s life span.