Investing in black gold in 2011 requires a savvy approach, but when you realize that petroleum based products are used for a wide variety of other materials like toothpaste, refrigerators, and furniture, that will continue to be in high demand, it’s easy to see why oil is considered black gold in 2011.
Because the demand for petroleum based products as well as oil and gas powered energy sources will continue to experience significant increases in global demand, oil truly is black gold in 2011, offering real potential for significant returns on investment. In addition, because of specific incentives provided for investors, there are also a number of tax benefits that add to the potential for striking black gold in 2011.
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Demand for oil increases approximately 2% each year. By 2030, the demand for oil may be as much as 50% higher than it is today. There is a perception that we are quickly spiraling toward an energy crisis. While governments continue to explore alternatives like bio-fuels, it is quickly being discovered that processing bio-fuels actually puts an additional strain on the ecosystem because of the land and water required to grow the crops necessary for production.
Even as developers continue to move forward with creating short term and long term alternative, renewable energy strategies to help meet the global demand for energy, oil will continue to be a high-demand commodity. As people move to using electric cars, oil is required to manufacture the batteries used in the cars as well as the electricity used to charge the cars. This increasing demand forces prices up, and much like a precious metal, investors who invest in oil may strike black gold in 2011.
Whether or not you should invest in black gold in 2011 depends on your status as an investor. In order to have the opportunity to truly tap into black gold in 2011, you need to be an accredited investor with a sufficient level of financial stability to withstand the inherent risk that accompanies such potentially profitable investments.
Inevitably, our supplies of oil and gas will eventually run out. Until that time, however, which may still be 200 hundred years in the future or longer thanks to new technologies that help locate additional, previously unreachable supplies, demand – and prices – are predicted to continue rising. Peak oil production will most likely be reached by 2030 or 2040, and once supplies begin to diminish against the ever-increasing global demand, those who have the oil and gas will control the wealth.
It is because of this convergence of demand, supply, and price predictability that oil is often considered to be black gold in 2011. Now is the time to begin positioning yourself as an investor, ahead of the demand and supply curve, ahead of the expected rapid price increases. By investing in black gold in 2011, you assert yourself as one of the lucky well owners whose product will continue to experience higher and higher demand.