Know how to take care of risk factors related to natural gas and oil investments

Energy sector has always attracted investors. In fact, many have already reaped lucrative profits by taking an aggressive approach in the oil and natural gas sector.

Several avenues are available for natural gas and oil investments. There are exchange traded funds or ETFs, mutual funds as well as direct equities, which allow you to invest in this sector. On the other hand, few alternative options are available too which provide more direct exposure to the energy sector. Be it limited partnerships, working interests or investments through trusts, investors are willing to lap up any profitable option.

When it comes to taking investment decision, a cautious approach needs to be adopted. Before thinking of the profit, you need to know more in details about the risk factor. Oil and natural gas is one such sector which can ensure steady and life-long return provided you have done a prudent selection. By investing in oil and natural gas drilling ventures, you can accrue steady cash flow, long-term economic value, dramatic upside potential as well as permanent tax benefits. On the other hand, you may squander your hard earned money by investing in a project which ultimately turns out to be unproductive or too expensive.

In recent times, several oil exploration companies have come up, based in and around Texas, with an aim to tap billions of barrels of oil lying underground the Bakken formation. Stretched across western Northern Dakota, northeast Minnesota and Saskatchewan province of Canada, this belt is believed to contain rich reserves of oil, waiting to be explored. One particular company, Breitling Oil and Gas has applied extremely advanced hydraulic fracturing technique for exploration purpose. The company has handpicked locations like Marcellus, Bakken, Cleveland, Eagle Ford, etc. for its drilling projects. The strategy has produced positive results too. This is one company which has been able to extract oil and natural gas at a fraction of current market price…

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