IS OIL AND GAS A PROFITABLE INVESTMENT?

Yes. Oil & gas companies are one of the largest companies in the world. Oil & gas can be a very profitable investment.

There are many forms of investmetns in oil and gas. This can be accomplished in many ways; 1) buying stock in large public companies, 2) invest in oil and gas exploration, refineries and service companies and you can 3) invest through mutual funds or 4) derivatives such as commodities futures.

These investment areas in oil and gas are potentially profitable. However, as an investor you should note that there are varying degrees of risk and reward.

One of the first factors of investing properly is determining what your investment goals or objectives may be. As an example, it may be that you are looking to receive a 7 to 12 percent annual return. This type of return can be easily obtained with the purchase of stock from most of the well-known major or independent oil companies.

Or, you may be looking for a rate of return in the 20 to 50 percent range. This can be accomplished by purchasing stock in aggressive small independents or by investing with service companies expanding into new markets.

There is also potential to receive much higher rates of return - some exceed 100 percent - depending upon your ability as an investor to accept higher degrees of risk. Investing with independent operating companies on a direct participation investment is one option. This is similar to what the major companies do when they invest with each other in developing projects.

They also reduce their risk by participating with other oil companies that are located in different geographic areas. It is not uncommon for oil companies to have a specific knowledge or infrastructure in different geographic regions. By sharing in developmental costs, the companies equally reduce risk and gain potential reserves by diversifying their risk.

Yes, investing in the oil and gas industry can be very profitable. However, it is very important to have a good understanding of the type of programs, their structures, and your own level of risk. This leads us to the next question.

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IS OIL AND GAS A SAFE INVESTMENT?

Yes, investing in the oil and gas industry can be a safe investment. As we eluded to earlier, one of the safest investments is to own stock in what many consider to be "blue chip" companies known as the "Majors" in oil and gas.

One incentive in investing in a "blue chip" company is that your level of risk is quite low. As a result, return levels are also fairly low. However, you will be making an investment in the oil and gas industry. If this is your main objective and you're looking for low risk, this may be a good and safe investment. On the other side of the coin: the higher the risk, the greater the return. Again, we come back to your investment objectives.

One way our government helps address the issue of risk is that it allows companies that drill for and produce oil and gas to offset some of the cost through the use of tax deductions.

Oil and gas are natural resources that deplete through extraction. In other words, these are not renewable energy sources and our tax code has allowed a depletion allowance of up to 15 to 20 percent*. In addition to the depletion allowance, we have intangible drilling costs as well as tangible drilling costs. There can be additional tax benefits depending upon what type of category a particular project falls into.

For example, there are tax credits for drilling tight sands as well as unconventional reservoirs.

Even though the tax benefits are very helpful in offsetting some of the risk for oil and gas, no consideration for an investment in oil and gas should be considered based on the tax benefits alone. Tax benefits are what they are - BENEFITS. These benefits are very useful, however, if it is taxes you are wanting to avoid, you would be much better off giving your money to a favorite charity.

When investing in oil and gas there are many aspects of the industry to consider before determining a safe investment. Three of the main features are:

1) Your investment acumen.
2) Investment objectives.
3) What type of investment vehicle?

1) Investment Acumen: Investment acumen means insight or judgment. In other words, as an investor you need to have the knowledge to be able to ask the right questions and understand what is the right answer. That way, you will be able to make much better investment decisions. Safe decisions to invest or who to invest with are the first prerequisite to profitable investing.

2) Investment Objectives: As we stated earlier, your investment goals, or potential returns, accompanied with the appropriate amount of risk can only be determined by you, the investor.

As an example, if you are interested in analyzing the potential loss of your investment funds, you would be much better off investing in "blue chip" major oil company stocks. However, if you could accept a larger degree of risk, or in other words, potential loss of these investment funds, you may consider investing in projects that offer a higher rate of return. This leads us into our next category.

3) Investment Vehicles: These vehicles may be stock, an investment fund, a drilling fund, private placement, commodities trading, or some combination of all of the above.

These options bring us to the next section: What ways are there to invest?

See Part 2 soon....

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NEW AMERICAN IDOL 06

The new american idol is born. and Yes there is nothing associated with oil and gas but since this is the hottest thing on the internet and across man parts of the world. I thot I just say

"Congrats Taylor Hicks"

If you happen to want to know abt "investments in oil and gas" or you are worried abt high oil prices... click here.

Why high oil prices haven't cut demand

Bigger economic incentives needed to conserve energy. Read here for an interesting analysis on why high oil prices have not affected demand as much as they traditionally used to.

Read here.

All About USA oil fields and Operators...

Click here!

Up. Up and Away! Worried abt rising oil prices?

Watch the video!



Over the last 24 hrs, 3 of my frds have been convinced that they CAN PROFIT from high oil prices! If you wanna know... pls email me... or speak to your frd who referred you here!

Information given is time sensitive as good deals dun last forever! :)

DragonflyThree
p.s. you can take your time to consider... while 500 investors have started to profit from high prices...

p.p.s email me to know more

Powder River Announces Revenues Over $6 Million-First Quarter Earnings

CALGARY, ALBERTA--(MARKET WIRE)--May 16, 2006 -- Powder River Basin Gas Corp. (OTC BB:PRVB.OB - News), a revenue generating producer, acquirer and marketer of crude oil and natural gas properties, today announced the results of the first quarter earnings for 2006.

Click Here for more details.

Asia warned! Cheap gas is gone...
by Nigel Wilson, Energy writer
The Australian

October 25, 2005
ASIAN markets would have to pay more for natural gas to bring them in line with sharp increases in prices elsewhere in the world, Woodside's chief executive Don Voelte has warned.

Gas prices quoted on the US Henry Hub market have almost doubled this year, topping $US14 ($18.67) for a million British Thermal Units as the US heads into winter and suffers supply disruptions from the hurricanes in the Gulf of Mexico.

Those prices are said by industry insiders to be roughly 2.5 times the effective price obtained by the North West Shelf for its confidential long-term contract sales to eight Japanese buyers, which are up for renewal.

Mr Voelte's views were contained in a speech he made to the Asia Pacific Economic Co-operation Forum in Sydney last Friday, which was released to the market yesterday.

They provide the background to the reluctance of Australian liquefied natural gas (LNG) projects -- such as the North West Shelf (which Woodside operates) and the Chevron-operated Gorgon project, planned for Barrow Island off the West Australian coast near Onslow -- to enter into long-term contracts at prices which company officials believe are unrealistically low.

Mr Voelte said Asia could not isolate itself from price movements in the rest of the world, particularly in the US. He said the recent increase in the US natural gas price "is likely to significantly increase the upward pressure on Asia-Pacific gas prices".

Also, limited regional supply choices and increasing energy consumption in the Asia-Pacific region mean Australian LNG projects offered "a unique and highly attractive proposition for customers in Asia".

Customer pressure to sign cheaper contracts emerged in 2002 after the North West Shelf partners succeeded in winning the first-ever contract to supply LNG to China. The Guangdong arrangement -- which is worth $25 billion and calls for the supply of 3.3 million tonnes of LNG a year for 25 years -- was criticised at the time as being too cheap.

While potential LNG customers, particularly from Japan, China and Korea, argue the Guangdong terms should be used as the base for new supply deals, Woodside said they were ignoring aspects of the contract which included Chinese equity in the North West Shelf gas reserves, contributions to the development costs of the huge project and what amounts to a tolling agreement for processing gas.

Mr Voelte's comments also suggest customers in Asia were ignoring the reality of a soaring world market for energy and a huge predicted shortfall in US capacity to meet its burgeoning demand.

Late last year Woodside missed out on a medium-term contract to supply LNG to Korea but at the time Mr Voelte said he was unworried because he believed the cheapest LNG in the region would come from Australia.

The Gorgon partners adopted a similar stance earlier this year when the Guangdong buyer, China's third-biggest petroleum company, China National Offshore Petroleum Corporation (CNOOC) pulled out of talks that would have resulted in Gorgon gas being marketed to other receival terminals being built in China.

CNOOC was told that if it could find cheaper gas to supply China's growing demand it was welcome to it.

Mr Voelte said China's demand for LNG was expected to increase 600 per cent by 2015 while the US market for gas was expected to grow from 22 trillion cubic feet a year to 30 trillion by 2025.

This equated to more than 140 million tonnes a year of additional LNG production.

Mr Voelte said historically Asian LNG prices reflected a supply overhang in the late 1990s and the early part of this decade which had to an extent shielded Asia from increased oil prices and US natural gas prices.

"This overhang has now largely evaporated and as LNG becomes more and more a global commodity, the increase in US gas prices is likely to significantly increase the upward pressure on Asia-Pacific gas prices," he said.

Why invest in oil and gas?

(courtesy of OilPods.com)

Oil is one of the most important natural resources known to mankind. For most societies in the world, oil is the principal natural resource that fuels their economies.

Then why, in this great age of communication and technology, do we need to be concerned about a natural resource like oil? Simple. Nearly 98% of everything you have or do is in some way related to crude oil. Heat for your home, gas for your car, 2 liter plastic bottles for pop, and petroleum jelly are just a few examples of products created from crude oil.

The United States has the greatest standard of living in the world, as well as the largest economy. Why? Because we have always tried to maintain control over the supply, as well as price, of oil. Over the last 10 years, the U.S. economy has underwent the largest economic expansion in history and cheap oil has fueled this unprecedented growth. Unlike the 1970s, when the U.S. was held at bay by OPEC withholding oil production for political reasons, the growth of the oil industry during the 1990s, and beyond, will be more likely be determined by the laws of supply and demand.

As democracy and capitalism are spreading around the world, global oil consumption is at record levels. Throughout Latin America , Russia , India and Asia , economic growth is accelerating at a remarkable pace; much faster than anything we have seen in the U.S.

Recently Forbes described the development now exploding across Asia :
"You can almost smell the money in Shanghai , Bangkok , Kuala Lumpur or just about any East Asian commercial center outside Japan these days. Traffic snarled, construction booming, glitzy shopping malls showing the latest Hollywood movies...These formerly traditional societies, stagnant for centuries, are exploding into the modern capitalist world and spawning vast new middle classes with a taste for consumer goods and the means to indulge that taste. Healthy economics generate great wealth, and Asia is churning out billionaires as though on a conveyor belt."

Here is what appeared in a special issue of Personal Finance:
"In these countries, more than two billion people, or more than 40% of the world's population, are suddenly entering the age of consumerism. Thanks to American movies, TVs and VCRs, they have seen what the rest of the world has and they want it all. "They want McDonald's french fries. They want Coke. They want Levi jeans. They want Caterpillar tractors. They want cars, cameras, mouthwash, homes, toothpaste, Tide, aspirin and ten thousand other products we take for granted. "In vast regions of these countries, they're starting from the raw basics of modern life. They need electric power, running water, sewage treatment plants, bridges, tunnels, roads, cities -- you name it. "And oil is the one commodity absolutely essential to this tidal wave of global growth. It's literally the blood supply of capitalism. If you're a developing country, you need all the oil you can get to drive your trucks, your cars, your planes and ships. You need oil to run your factories, machines and power plants so necessary to a modern industrial economy. "What we're seeing is the first simultaneous, worldwide economic expansion since the late 1970s. But this time, many newly industrialized countries are joining the party and importing an unending procession of super-tankers laden with lack gold."

I have no knowledge of the oil industry and therefore am skeptical of the potential it has. How are profits made?

It is common knowledge that most present day conflicts are fought over the discovery of oil and the rights to mine the site thereof. The Spratley Islands and the recent conflict in the Middle East is a case in point. Owning the mineral rights of a land gives the owner/owners the rights to mine the minerals and to profit from it. If nations go to war over such mineral rights, its stands to reason that possession of it brings the owners great wealth. Indeed it always has been a cherished proportion in the portfolio of the wealthy. Now, through a unique program managed by Oils land International Inc. and marketed through OilPods.Com, this opportunity to participate in the ownership of Working Interest of established and producing oil fields are now within the grasp of many.

What is the guarantee of my investment?

A title called the Working interest (WI) of the Oil lease is transferred to your name from the respective U.S. Government’s County office. You become the rightful owner with all rights, privileges and benefits from ownership of the WI. This WI is a freehold title.

How do we get our returns?

Generally once the oil is out of the ground and into the holding tanks, it must be sold. Each holder of a working interest has the right to take his portion of production in kind, and make his own arrangements for its sale.. The operator of the Working Interest will advise the buyer of the oil production as to the identity and extent of ownership of each of the holders of the Working Interest, as well as the identity of the royalty holders and the amount of their interests.

The information will be compiled on division orders, which are the basis upon which the buyer of the oil can divide the proceeds of sale among the various holders.

The buyer of the oil will pick up the oil from the holding tanks at periodic intervals, gauge it and remit the remaining proceeds in the proper amounts to the holders of the Working Interest and the royalties.

However, due to the unique proportions of Working Interest sold by Oils land International Inc. the company has collectively entered into an agreement with the buyer of the oil production for all the holders of the Working Interest, and will distribute the proportions paid out by the purchaser of the oil production to the respective holders of the Working Interest through their marketing agent, OilPods.Com.

What is the risk?

Revenue from the oil and gas production is paid according to the current price of US crude oil or gas. Presently the average price of crude (BOPD) is US$70/ and gas (mcf) is US$7/-. The market must correct by almost 200% before an investor is deemed to be Out-of-the-money. Even under such circumstances, as the Working Interest is freehold, it is a matter of time before market corrects favorably and revenues continues.

There has never been a better time to invest in a WI of an Oil and Gas lease. Price of oil barrel is at US$70. Gas prices are stabilized well over $7.00/- mcf. Our projections are very conservative and at the current prices of oil and gas, returns are well over 15% pa.

What if there is no oil in the ground?

In our present offering, Powder River Basin is a locality, rich with Coal Bed Methane Bed seams from which we get CBM gas, a form of Natural Gas. One only need to research into the internet and one would easily find a plethora of information confirming the abundance of these reserves in that locality. PRVB owns 9000 acres of this mineral rights in this area.

What if Powder River Basin Gas Corp.(PRVB) becomes insolvent?

Your portion of WI is independent of those held by PRVB Should there be a need to liquidate our proportion, it will not affect the portion of Working Interest held by the investor. Therefore the purchasers of the oil and gas production will still distribute revenues according to the proportion held by the individual investor.

500 retail investors in Asia are secretly profiting from High Oil and Gas prices while we are hurting from high oil prices. Read on and discover how you can be part of this exclusive group of investors.

"In the United States the demand for natural gas is projected to rise substantially in the coming years, as it is the environmentally preferred fossil fuel and therefore the fossil fuel of choice for new electric power plants... If lower-48 State proved gas reserves are reported to the Department of Energy with reasonable accuracy, ... It will not be possible to increase domestic gas production sufficiently to meet projected additional demand, especially with the addition of the new gas fired power plants...." By Joseph P. Riva [April 2002]

Oil prices have already reached ridiculous prices and predictions are that prices will continue its path towards the US$100 per barrels levels. The most astonishing thing is that everyone has accepted the fact of "high oil prices".

However...

Have we really felt the true "pain" of high oil prices? I guess not. Do you know the 98% of all the things we use or touch or see daily is associated largely to oil. Your electricity (including your TV), water and plastic bottles are made from some form of oil derivatives... if oil prices have risen, its a matter of time, prices will start to rise... USA has raised interest rates to a record level to curb growth and inflation, however, inflation doesn't seem to be slowed down as oil prices continue its record climb.

Is it time we do something?

Can something be done?

Well, in Financial terms, we need to hedge ourselves against high oil prices. Protect ourselves in layman terms. One good way is to own assets that produce oil and gas in short.

Really? Possible? Isn't owning oil and gas fields only for the rich and famous like the middle eastern oil sheikhs?

There is an opportunity now provided by Powder River Basin Gas Corp (PRVB). PRVB an OTCBB traded public company who is a revenue generating producer and acquirer of crude oil and natural gas, with primary interests in Wyoming, Oklahoma, Louisiana and Texas. The Company is currently involved in aggressive acquisitions of additional properties as well as operating companies. One of their investment program includes their Asian Investor Program. Click here to know more.

The opportunity is now to PROFIT from high Oil prices,

BENEFITS
1) Hedge against high oil prices.
2) Own a strategic asset.
3) Make between 9-15% annual returns (likely more with high oil prices).
4) Breakeven on Capital in approximately 3 years.

Email me or your frd who referred you here for your "No obligation" free report on Trends in Oil and Gas. You will also get a FREE copy of "The secret of making US$25,000 annually for life." Email me today.

7 Se.crets of High Oil Prices!

7 Secrets of High Oil Prices

SHHHHHHHHH!

Can someone remember when oil prices was $20. Can someone remember when oil prices was $30. Can someone remember when oil prices was $40. My point is, we are used to an oil price of $50 to $70 and we are even prepared to see prices at $100 or higher. I guess we are now getting used to oil prices over $60. So its no more a secret why oil prices are high? Maybe 7 reasons is a better title. I admit. Here it goes!

1) Growth of China and India- therefore demand in oil. If these countries are expected to growth 7-9% a year for the next 10 years. The demand is only expected to go up, up and away as supply for oil is largely constant. See second point.

2) Limited Supply- It take years to produce oil naturally. More than thousands of years. So oil is limited and we expect oil to run dry in 50 years or less.

3) Limited sources of other energy- Nuclear and bio-fuel is touted as alternatives but it will be likely enough to cope with new demand but not replace energy from oil. So oil and gas will remian the main source of supply of energy of up to 70%. Then it still takes more than 10 years to build a nuclear plant.

4) Potential disruptions in oil supply- Wars, Natural disaster and Wars

5) Understated supply sources of Oil

6) Hubbert Peak in production of Oil

7) Oil is not only used in energy sector but in 98% of our daily raw material usage. Plastic bottles?

p.s. If you dun understand, how these 7 areas can push oil price to peak further. Email me. or read the Oil Factor by Donna Leeb.




p.p.s If you wanna know how to PROFIT from a rising oil price environment. Email me.

About OilPods

Oil and Gas Fields investments

Traditionally, investing in Oil and Gas fields has always been the territory of the well heeled. This will be synonymous to the clientele of Private Bankers. A new concept to give retail investor a chance to be part of this is born in Asia to all us to become one of the elite few to own oil fields.

We are looking a returns of between 9-15% and above (subject to oil prices) for investors with US$25,000 and above.

We are also looking for suitable consultants to join us. Expected package, US$100,000 annually.

For a chance to own oil fields in USA, email me now!*
*available to investors from Indonesia, Malaysia and Singapore only