Investing in oil wells offers certain sophisticated investors a number of benefits worthy of attention in this continuing volatile economy. If you are an accredited investor who has ever considered investing in oil wells, consider the following five factors in order to understand why investing in oil wells right now is so critical to both your own financial future and that of the U.S. economy:
1. ) Tax Benefits. In a time when Congress is unable to come to any kind of agreement about moving the country past its economic sluggishness, it is more important than ever for savvy investors to protect their wealth in every way possible, and investing in oil wells through direct participation and joint venture opportunities allows investors access to some of the best tax advantages available in the country.
2. ) Liquid Gold. Oil is considered liquid gold for a reason: like gold, it is a precious and rare commodity. Those who are investing in oil wells are positioning themselves to control a highly-sought after commodity that is predicted to continue increasing in price as demand goes up and supplies go down. Now is the time to be investing in oil wells to be in the position for taking advantage of the growing demand.
3. ) Cash Flow. Successful wells create both short-term and long-term cash flow; investing in oil wells can significantly increase your wealth while allowing you to diversify and balance your investment portfolio to protect against unexpected volatility in the financial and real estate markets.
4. ) Economic Improvement. A more altruistic but nonetheless necessary reason to consider investing in oil wells is because of the impact it can have on the overall American economy. Investing in oil wells will not only create jobs in the oil industry but will also create jobs in industries that support the oil industry, such as manufacturing, transportation, and retail.
5. ) Increasing Domestic Supplies. Investing in oil wells is a crucial first step toward ending the country’s reliance on foreign oil supplies. Most of our oil comes from countries in the Middle East and North Africa, a region fraught with tension, revolution, and instability. Investing in oil wells will allow the United States to increase domestic supplies, which will continue to be needed even as we work to develop alternative sources of energy, since there are no alternatives that can fully meet the energy demand in this country without investing in oil wells.