Before you think of cutting that cheque and making an investment in any oil and gas venture, please read on and be well informed for the same. You may or may not have invested in such schemes and companies before; there are always wise decisions to make for the same. Today, we would like to give you informative ways and tips on what you should think of for the same. This we say with utmost concern, so that you don’t have to bear the slump if it ever happens.
1. If you have received emails with regard to investing in companies that deal with oil and gas, shun them off. Remember, successful companies would not send you such emails, newsletters or place ads online and in the print world to attract investors. There would always be loyal customers for good companies, and companies that are successful wouldn’t beat the drums to make people aware of it.
2. There are many fly by night companies which you should be aware of. These companies are far from being successful, and they promise you the sun and the moon. They look out for innocent investors who they can rip off, so be very careful. Nothing happens overnight, there are no miracle cheques to receive from small investments you make.
3. Speak to family, friends or even colleagues who have made such investments and have learnt the good and the bad from it. They would be the best sources you could trust for guidance.
4. Go online and check with Better Business Bureau. This site would tell you a lot about the company’s credibility. Clients and customers they have serviced in the past would leave behind testimonials. If you see unresolved issues from the past, without any solutions posted on their forums, the alarm bells should ring.
5. Minimum investments should be made when you start. This would be the money you can afford to lose, which is the basic thumb rule we keep talking about. Such minimum investments would actually work well for a lifetime, if smartly invested.
6. Check with referrals the company provides you of clients who are loyal and those who have been with them since inception. Speak to them and find out how satisfied they are with the investments they made.
7. Investing in oil and gas companies for profits is like a gamble. You have to speak to experts and seek guidance before taking the plunge. If this is not done, you may find yourself in deep waters, a dry oil well here. Learn more about the drilling techniques they use, seismic knowledge etc.
8. One can even think of buying the company’s shares, which is better than investing in wells or drilling activities in an area new and lately discovered.
9. Never fall for flashy websites that have too much information on them about investing in oil and gas companies. Reputed and successful companies thrive on word of mouth publicity in most cases. They wouldn’t need to flash their expertise and success.
10. Speak to financial experts, those who deal with such investment schemes and learn more about making the right investments. Sometimes it would be better to invest small with start up companies, rather than making large investments with big companies around. Once again, it would only be the investment experts who could inform you better.
There is an old adage which says, follow the rule of the thumb when investing in oil gas companies. Lily Noronha has been writing on such investment practices for more than a decade now. Experts and professionals opine that investing in what one can afford to give up, is the best rule to follow.