Why It’s A Good Time To Invest In Oil And Natural Gas
Here at Northern Oilfield Services, we believe that now is a great time to invest in the oil and natural gas industry — especially oil well investments. While in the very distant future, clean energy like solar and wind power may be the way to go, in the here and now it just isn’t feasible. In today’s blog here at Northern Oilfield Services, we are going to discuss a few reasons why we think now is a great time to invest in oil and natural gas in general, and in oil well investments.
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There Is a Need For It
Perhaps the most obvious reason to support both oil well investments and oil and natural gas is the demand. Our global culture makes it abundantly clear that we need oil and natural gas — and we will for years to come. A vast majority of our transportation relies on gasoline. Airplanes, cars, semi-trucks, motorcycles, all need refined oil to function. Many household appliances rely on natural gas such as stoves, ovens, heating systems, fireplaces, water heaters, and more. The world needs oil and natural gas, and as our population grows, so does the world’s demand for our primary energy resources.
Undiscovered Oil and Natural Gas
When you make an oil well investment, there is always the chance that you happen upon a large, undiscovered reserve of oil and make an enormous return on your investment. There is estimated to be more than 550 billion barrels worth of undiscovered oil out there waiting to be found. While we wouldn’t necessarily count on that happening to you, it is certainly a possibility that makes an oil well investment a very attractive financial opportunity.
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Tax Breaks
One of the biggest reasons to invest in oil and natural gas is the tax incentives that you receive from the government. The United States government allows you to deduct up to 80% of your oil well investments. This protects you if your wellhead ends up being dry and resource-poor. Or, if you have a successful wellhead, this can help give some padding to your return on investment. This tax break helps to incentivize investors who otherwise would not want to get involved with oil well investments.
Long-Term Gains
Oil well investments are a long-term investment strategy. Most of the time, people are investing with the hope that it will continue to generate passive income for many years to come. It can take quite some time to extract all the resources from even one wellhead. So, for investors looking for a steady revenue stream from energy resources over a long period of time, investing in oil and gas can be an attractive option.
You Know What You’re Investing In
With oil well investments more so than oil and natural gas in general, you have more direct control and influence over your investment. You can step foot on the frac site in-person to see with your own eyes if your investment is worthwhile. Additionally, you can gather specific statistics and information that apply to the individual wellhead that you can use to determine whether or not it will be a wise business decision. Most oil and natural gas investment experts opt to invest in specific wellheads rather than the oil and gas industry as a whole for this very reason.
Northern Oilfield Services
For oilfield equipment rentals, purchases, maintenance, and more contact our team here at Northern Oilfield Services. We are experts with years of experience that in the oil and natural gas industry who are completely focused on providing you the best, most customer-oriented wellhead services possible. Northern Oilfield Services is your one-stop-shop when it comes to wellhead services. We will happily help you get all the equipment you need through our wellhead equipment rental and sales services, and meticulously maintain the wellhead equipment for you to keep your job site running at peak performance. Reach out to us today to start your wellhead services!