Invest in Oil and Gas
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by: gh1949@gmail.com
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Invest in Oil and GasnnWhen most people talk about investing in oil and gas, gas is including on the end of the phrase like a distant, unknown relative. Did you know, however, that when you invest in oil and gas, natural gas may potentially provide you with as much if not more potential profit than oil?nWhen you invest in commodities, there are no real tax benefits; you pay capital gains on the income you make from the investments. When you invest in natural gas exploration, however, you can write off many of the expenses related to the development and establishment of the well. You can also earn an income off of the well's production of which a portion will not be taxed. nIt is estimated that natural gas, which is already used by millions of homes for heating, hot water, and even cooking, will continue to increase in demand exponentially. Natural gas may seem like a new player in the energy market, but it has actually been used since ancient times. In China, natural gas was captured and moved using bamboo "pipes" as far back as 600 B.C.nThe U.S. Energy Administration expects demand for natural gas in the United States to increase 20-60% over the next 20 years. Natural gas has many advantages: it is clean burning, it is available in more abundance that oil, and we have not even come close to tapping in to all of the potential natural gas sources. According to MoneyWeek, natural gas is the "world's fastest growing major energy source" (July 6, 2006).nYou can invest in natural gas the same way you invest in oil and gas, by investing directly in drilling projects or by buying stock in existing publicly traded energy firms. However, when you invest directing in drilling projects, you may have some of the same tax and income benefits you receive when investing in oil drilling. nWhen you invest in oil or gas (or both) energy investing may be a risk but it is one that can offer a tremendous payout. The global demand for oil and gas continues to increase while the supply of oil and access to natural gas reserves continues to be difficult to overcome. The resulting long term increase in price can mean a very lucrative long term investment possibility for the right investor. There are many natural gas reserves in the United States that have yet to be discovered; your decision to invest in oil and gas may be a very profitable venture.nnnn
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