Why you should consider Oil & Gas Joint Ventures!
- You believe in Providence, yourself and a trusted few.
- You worked hard to achieve a respectable level of financial security, but you would never consider yourself worldly rich. Rather, you see yourself and your family as blessed with abundance.
- You learned early in life that nothing worthwhile comes easy, so you work hard, complain little, and are willing to take risks when the rewards are worth it.
- You won more than you lost, but it's your hard-fought failures that have taught you the most.
- You like the idea of investing in something substantial that is part of America! Something tangible that you can show your grandchildren. You are ready for investments other than what Wall Street offers.
- You value Relationships. Family is paramount.
- You place Wisdom and Trust uppermost in your mind.
These are some of the main reasons why you should consider O&G joint ventures. What follows is a candid explanation of what oil and gas joint ventures are, what types of investors may benefit from them, and what to look for in the offering company. It also explains why you should contact Eratz Investments to discuss them further.
What is an Oil and Gas Joint Venture?
In simple terms, it is a partner-owned business entity that actively participates in oil and gas production by drilling oil and gas wells. If all goes "according to plan" (producing well), the partners increase their net worth and monthly income. In the "worst case scenario" (dry hole), they can write off most of the investment against income for tax purposes.
Oil and gas joint ventures have been around for years and have a checkered past. Historically, disreputable promoters, unreliable and bad operators, periodic boom/bust in oil prices and the public's misunderstanding of the industry/risks have all contributed to investor skepticism.
Today's joint ventures have come a long way in overcoming these negatives. Yes, risks still exist (as in every business opportunity) but they are more than offset by potential returns. Your challenge as an investor is selecting the right company to partner with.
What type of Investors might be Interested?
Thousands of individuals each year invest in joint ventures. In general, they are:
- Mature and financially successful persons (financial net worth exceeding $1 million or annual income greater than $200 thousand; $300 thousand if filing joint).
- Want to increase net worth and monthly income more than what is offered by stocks and bonds.
- Able to take advantage of significant tax write-offs and shelters.
- Need to rebalance their investment portfolio.
- Ready to allocate a portion of their assets to joint ventures.
- Confident to handle risk/reward benefits by building over time a portfolio of joint venture projects with a suitable oil and gas joint venture company.
How do Joint Ventures fit in today's Oil and Gas Industry?
We are talking about the joint ventures offered by the independent U.S. oil and gas companies. They are well suited to take advantage of opportunities overlooked by the "major oil companies". Here's why:
- New Technologies - Technological developments in exploration, drilling and production technologies (such as 3-D geological imaging, horizontal drilling and fracking) have greatly improved the economics for smaller companies to produce in proved reserves overlooked by the "majors".
- Consumption Trends - Developed and developing countries will continue to use more oil and gas for decades to come. Conservation and alternate energy will not stop it.
- National Politics - Issues such as pipeline construction, fracking and railroad tanker transportation are sometimes in the news. Washington, however, realizes the importance of maintaining a strong and resilient national oil and gas production infrastructure epitomized by our independent oil and gas companies.
- International Politics - OPEC influence and Middle East instability are mitigated by our independent oil and gas companies. Joint ventures can be profitable whether oil prices go up or down.
How do You find a great "Joint Venture" Company?
If you want to find a great company, you must get answers to these questions:
- Experience and history - Does the company have a track record of success in both "boom" and "bust" oil price cycles? Has it been in business long enough to have industry expertise and contacts?
- Expertise in exploration and production - Does the company know how to find and drill successful wells in overlooked oil and gas reserves via new petroleum geology analysis, seismic and fracking technologies? Can it operate wells via improved well workover and reservoir engineering techniques?
- Viable business model - Does the company have a business model that can make money in both high price and low price oil scenarios? Does it have projects dealing with new production (in-fill) as well as workover?
- Top Management - Are the top managers "movers and shakers" who can make things happen no matter what obstacles may arise? Do they have top flight geologists, petroleum engineers and business advisors that contribute to successful wells? Do they keep an eye on short-term and long-term factors affecting oil and gas demand and price?
- Are they highly ethical? Do they follow the SEC guidelines? Do they treat people, other companies and the land with honesty and respect?
- Do they have "skin in the game"? Are their interests aligned with their investors because their own money is in the joint venture projects?
Of course any company that contacts you will tell you they have "all the right stuff". Perhaps they do, but you must confirm this with your own "due diligence".
Introducing Eratz Investments
The only way to invest is by building a successful, mutually beneficial long-term relationship with a great independent oil and gas company. And this is where Eratz comes into play. Many investors have built a profitable long-term business relationship with us because we have worked hard earning them money. We can do the same for you. You can learn more about us by exploring our website. Please view the "Due Diligence Checklist". And please contact us when you are ready to discuss our current joint venture!
We hope you now have a much better understanding of oil and gas joint ventures, and why they might fit your investment needs. There is more you will want to know, so please contact us!