Wise Investments

    • Wise Investments

      Investing in oil companies has many benefits. There is not just the promise of assured substantial returns but also numerous tax benefits. When an oil well is hit, you can start receiving returns in as soon as 60 days. There isn't an investment on the market that provides results as quickly as oil and gas have the potential to.

      The oil company investments are further supported by the fact that the oil industry is stronger today than it has been in the past 150 years. This is further substantiated with the natural gas market booming and the global demand for energy growing. Experts predict that by the year 2030, worldwide consumption of oil and gas will exceed 115 million barrels per day, which is 30 million barrels higher than are consumed daily today.

      This makes the oil sector, a safe and relatively lucrative investment. However, oil company investments should be attempted with expert advice and not as a hobby. The expert advice can be provided by portfolio managers. The investors can also visit and learn about geographical characteristics of drill sites as well as seismic and structural features of oil industry sectors while considering potential investment.

    • Investments in Marcellus Shale?

      Hello Stattman.

      What is your opinion about investment in Marcellus Shale?
      I read the following a while ago.

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      Japanese firm to invest $1.4 billion in Marcellus operation

      By Andrew Maykuth

      Inquirer Staff Writer


      In the latest signal that global money is flowing into Pennsylvania'snatural-gas fields, Japanese giant Mitsui & Co. is investing $1.4 billion in Marcellus Shale gas drilling - and may sink in billions more in the next decade.
      Mitsui yesterday agreed to buy a 32.5 percent stake in the Marcellus Shale natural-gas operations of Anadarko PetroleumCorp., the Houstonglobal energy firm that has interests in 712,000 acres in seven Pennsylvania counties. Anadarko is the largest leaseholder in Pennsylvania state forests, with 128,000 acres.
      The Mitsui investment will fund all Anadarko's development costs in 2010, and 90 percent of its remaining costs through 2013. Mitsui also has an option to buy a 32.5 percent share of Anadarko's existing wells and to fund additional acreage acquisitions.
      The Tokyocompany expects to invest up to $4 billion over 10 years in the partnership, which would produce up to 460 million cubic feet of natural gas a day at its peak.
      "We continue to ramp up our activities in the Marcellus and anticipate drilling more than 4,500 wells over the coming years," said Anadarko chief executive Jim Hackett.
      There were a total of 768 Marcellus wells drilled in the entire state last year.
      The investment is the latest indication that large oil and gas investors, which abandoned Pennsylvania in recent decades, are rushing back to exploit the Marcellus boom. In December, ExxonMobilagreed to buy XTO Energy, a Texasgas producer with substantial acreage in the state.
      Mitsui, Japan's second largest trading company, says its investment is a 60-year play and is looking at expanding its shale-gas business in other areas in the United States.
      "The U.S. will be a major gas market in years ahead, and it needs vast investment in production infrastructure," Hiroshi Sakurai, an analyst at Mizuho Investors Securities Co. in Tokyo, told Bloomberg Business News.
      Anadarko's acreage is concentrated in Centre, Clinton, Lycoming, Sullivan, Bradford, Tioga, and Potter Counties.

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