Your Family and Oil Investments

Your Family and Oil Investments

February 11, 2015 Off By Jane

If you’re thinking about investing in oil, you may have a variety of questions, and you might also be unsure about how to proceed. By exploring a few important details related to getting started, you can begin to gain a clear sense of how to move forward. You might also learn a few dos and don’ts that could save you time, trouble, and money.

Awareness of Fraudulent Practices

As the North American Securities Administrators Association (NASAA) points out, most opportunities to invest in oil are legitimate. However, as with any field where there is many to be made, fraudulent practices and individuals exist. It’s important to be aware of certain signs that could indicate that an oil investment opportunity may not be legitimate.

If a sales representative is not forthcoming about all of the details that pertain to a potential deal, the opportunity may not be a wise investment. A salesperson should not have a problem with providing you answers (or access to answers) to any of the questions you may have. If you ask about the commission a salesperson is making, the answer should come without hesitation. A sales representative should also be willing to provide the answers you seek in writing.

Consider a Company’s Reputation

If you’re going to invest in oil, be sure you are doing so with the help of a firm that is reputable. A company involved in oil well exploration should have a high rating with the Better Business Bureau (BBB). You can also check the BBB site to see if the company you’re considering using has had complaints filed against it and if it has, you can view the nature of those complaints. Do some research before you commit to any sort of investment, including oil.

Know the Drilling Location

Another detail worth considering is the location of the drilling site. In Nigeria, for example, the potential for rebels causing major disruption or delays in production at a drilling site is not unlikely. This means that an investment there could quickly become a loss.

If you’re an American, you might consider investing in an American oil company. Doing this can help to increase the supply of oil in the U. S., and it can also help to create more domestic job opportunities. Another benefit of investing in American oil is that you should have relatively quick access to the well site in which you are investing. If you request a tour of the well site to see exactly how your investment is being utilized, a reputable company is likely to accommodate such a request.

Consider the Risk Involved and Plan Accordingly

According to US Emerald Energy (, any investment involves some risk, and this is true of an oil investment opportunity. One option is to invest your money in a few drilling projects. Instead of placing all of your investment in one drilling project, you might invest in two or three projects to minimize your risk. If one well is dry and you’ve invested in three, you could still profit overall.

Investing in oil can be a great opportunity, and it may serve your family well. Be sure that you research the company you are considering, and be wary of sales representatives who are hesitant to answer all of your questions. Once you find a company you can trust, its representatives can help you to move forward and make the most of your investment.