Liquid Gold has a Future
We always consider different alternatives to our wealth strategy; the dividend tactic is one of them and it can be achieved in the energy sector; that can actually bring dividends on a regular basis based on specific investments in the oil and gas industries.
The general environmental concern leads us to think that oil and gas will be replaced sooner or later by ecological alternatives, but they still remain a fundamental source of energy. Although a number of alternative energy projects are in the pipeline, it will take years before they become suitable alternatives to fill our ever growing energy needs. In the meanwhile we are still largely dependent on fossil fuels as our main energy source.
Investing in Oil and Gas
This field of business is challenging to access. If someone wants to invest in oil and gas, essentially there are two possibilities. You can do it the public way where you invest in listed companies through the stock market and you buy shares in companies such as Shell, British Petroleum, Exxon, etc; And then you have the private way which is much more challenging to access, as barriers to enter are higher. However it can be a very lucrative segment to play with, although you will need a substantial investment and eventually have the right network.
Here at The Access Club we have put in place the possibility to access these kinds of investments.
There are two types of wells: the explorations Wells and development Wells. Exploration Wells, considered very high risk investments, prospect in an area where there is the probability of finding oil. Explorers drill until they find it (or not) but when they strike oil it’s absolutely extraordinary.
The development Wells are in an area they know oil is already there.
The United States have started doing this and have increased their input in this market. They have become number one in the world. Currently we are in touch with an operator in America, that since 2014 hey have been very successful. It’s one of the largest private contractors in America for drilling oil. The returns can be really rewarding. We are looking at somewhere around 50% per year. It takes about 18 months to two years to get the first dividends but after that you start getting approximately 50% of your investment every year. You are then paid on a quarterly basis for as long as the wells keeps pumping which can be for 10, 15, 20, 30, 40 years, potentially.
This tactic is a promising one and definitely many of you would like to include it in your investment portfolio.