Are oil and gas drilling investments profitable, looking at investing with a company that only drills wells in proven areas.

The potential profit is great and money call roll in monthly for 20-30 yrs and the investment is 100% tax write off.

Would you invest in this type of venture?

Are you investing in this unstable economy?

Is it safe to invest, has the financial Storm slowed down?


  1. Tanh Says:

    It really depends on what type of investment you’re talking about and how you go about it. If in general you are asking me if it’s safe to invest now. I have 2 answers for you. It is never safe to invest at anytime. Safe is not what you want. For higher gains in almost any sector you will want to take calculated risks within a volatile environment. You want to run away from safe as that will only make you buy into bonds, GICs and so on. These investments in an inflationary economy like ours will generally net you negative growth. For instance, an GIC with return of 3% set for 5 or so years in a Canadian economy that has averaged a 3.9% inflation rate will mean you are losing 0.9% of your money per annum. No gains what so ever. There is your guaranteed / safe approach.

    Venture capitalism is a good way to go but will require a lot of time dedicated to research and the profits will be slow in coming as the venture takes form. This area is less dependent on market fluctuations and is more dependent on corporate leadership, organizational structure, financial acuity and so on. If you have time and money for the all consuming endeavours, then there can be great money made this way. Oil is a gold mine, no matter what the economic outlook is right now.

    If you are talking about general investing for the layperson, you probably mean asset allocations. (Stocks, options, futures, mutual funds, forex, real-estate and stuff like that) Here’s some news that people often doubt. The market is ALWAYS up after ten years. Take a look at history and you can see. The risk comes in if your investing on the spot market for shorter time durations. But for the long term, like say 20 – 30 years, a good global mutual fund should return anywhere between 10 – 15 percent (by dollar cost averaging).

    Worried about world market fluctuations? Go foreign exchange. Forex trades in 1 day what the stock market trades in a year. It’s the most volatile market we have available and you can make over 1000% profit in one day or lose your shirt. (yes that is 1 thousand %) I’ve got lucky and done it ONCE. Since it’s trading currencies you will not see bull and bear markets, just fluctuations and opportunities.

    Once again, there are calculated risks that must be taken to achieve any sizable gain. "The best time to invest was years ago. The second best time to invest is now." Time is your friend, my friend. I say go for it and make your money while you can.

  2. Says:

    Now is exactly the time you should invest…while prices are still pretty low.

    Most economies will bounce back and then share prices will rise. It isn`t a matter of `will they rise` – it`s a matter of `when`.

    Oil and Gas will continue to be safe and best investments for some time to come get – but obviously buy while they are low.

  3. Bree Says:

    The market has increased, but is still an unstable roller coaster. The housing costs in some states has pretty much leveled off, while others it’s beginning to gain positive ground and yet a few other states it is still declining. I have invested into bonds and gold. If you have a rather large sum that’s just burning to get you into an investment. I would suggest going with Gold, it’s gained positive ground over the last few years and has still continued to gain in this financial hail storm we’ve been experiencing.

    Good Luck, just know an investment should be made with funds you don’t rely on to survive and could be lost or become a small fortune.

  4. jeff410 Says:

    No I dont think its a good idea. We have an enormous glut of oil and natural gas right now and a weak economy. I think prices for oil and natural gas are going to drop. Oil is already sliding. Natural gas is up on the cold weather, but I see that as temporary. If prices drop, below what it costs to drill and produce, those wells could be shut in for a long time. There are also a lot of scams in the oil and gas drilling business. Proven areas may be an exaggeration. I would want to know a lot more about the operation. Exactly where those proven wells are and the wells they intend to drill and the formations. You can drill all around an area and hit oil and gas and drill in the center of that same area and get nothing. Do they already have the leases, when do they expire and when do they intend to start drilling. And how well funded is the drilling operation. If they dont hit on a couple of wells are they going to be out of business. And are they registered with the state Corporation or oil and gas commission. The best way to approach an oil and gas investment is if you need a tax write off. Thats how a lot of small time oil and gas companies get their money, from investors who need a write-off.