Business and Management

Reasons to Invest in Oil Company

Oil-related investments are one of the investments added by many investors to their investment portfolios. There are times when this seems risky. With the current market very volatile, this investment does not look risky.

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Here are reasons to invest in this commodity:

1. Power of industries – the oil industry is stronger and stronger. It has been around 150 years since the oil industry has experienced such strength.

2. Growing demands – demand for oil continues to grow and is expected to continue growing. Domestic oil demand is even stronger because people want to reduce dependence on foreign oil.

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3. Opening domestic markets for small companies – because large oil companies focus on offshore drilling, domestic drilling opportunities are open to smaller independent oil companies.

4. Requests are expected to grow – with the progress made in oil drilling and the use of oil to be more environmentally friendly, it is hoped that the use of this commodity will increase in the future.

5. Offs writing tax-with the abolition of taxes and incentives now available for oil investment. Tax cuts are designed to stimulate private sector oil investment.

6. Reduce the risk of oil drilling – when an oil well is drilled; there is a higher percentage of drills that produce it. This happens because of technological advancements such as 3D imaging.

7. Quick return – an oil well usually produces in 60-90 days and profits start immediately. In the event of not finding anything, most if not all, costs can be written off.


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