ArticlesBase.com - Free Articles Directory
Free Online Articles Directory
11.10.2008 Sign In Register Hello Guest
Email:
Password:
Remember Me 
forgot your password?


Oil Partnerships: How to Protect your Investment

Author: Samuel Martin Author Ranking Silver | Posted: 12-10-2007 | Comments: 0 | Views: 2 | Rating:  (50) Article Popularity - Green (?) Got a Question? Ask.
Sign Up Now!

According to the International Energy Agency, 2004 world oil demand increased by a higher rate than any year since 1988. And if current trends continue, worldwide oil demand will exceed 120 million barrels per day, according to the Energy Information Administration.

As oil fields yield less oil to satisfy this demand, prices are predicted to keep climbing. Forward-looking investors who see an opportunity to profit from these high prices are entering drilling partnerships with oil and gas exploration companies in geographical areas known to have established oil fields. Such drills may result in commercially marketable oil being found, bringing an investor anything from modest monthly checks to great wealth.

Although it's a risky investment, a good drilling partnership program may only have to hit one successful well to create a substantial profit. In addition, drilling partnerships can offer outstanding tax advantages.

However, investors should be cautious and research the company thoroughly before investing, said Dr. Roger L. Cory, President of Mammoth Resource Partners, a company that explores for oil and gas in oil-rich areas of Kentucky.

Cory says the company sets itself apart from others in the industry in the way it does business - more communication with and accountability to its investors. Through its "Partner Communication System," for example, investors are kept up-to-date on drilling activities via an online drill log. They also are able to see the status, GPS coordinates and permit numbers for each drilling project as it progresses.

Investors also should consider the net revenue interest - the percentage of the profits that investors receive from the sale of the oil produced, Cory said. Mammoth offers competitive net revenue interest.

Another thing for a potential investor to address is whether the company takes steps to increase the likelihood of striking oil. Mammoth packages multiple wells into one project and uses computer technology to minimize the risk of "dry holes."

And unlike others, Cory says, Mammoth includes already-producing wells in its packages to provide income and offset risk while exploring for new strikes.

Rate this Article: Current: 0 / 5 stars - 0 vote(s).

Article Source: http://www.articlesbase.com/business-articles/oil-partnerships-how-to-protect-your-investment-233325.html

Print this Article Print article   Email to a Friend Send to friend   Publish this Article on your Website Publish this Article   Send Author Feedback Author feedback  
About the Author:

For More Article Visit :: http://www.thearticleinsiders.com/

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Comment on this article Comment on this article
Your Name
Your Email:
Comment Body
Enter Validation Code: Captcha


Got a Question? Ask.

Ask the community a question about this article:

Q&A Powered by:
Powered by Yedda 

Latest Business Articles

A Review of the Zippi Income Opportunity
By: Brian Garvin | 11/10/2008
Zippi is a California based business that began in 2006. The goal of Zippi is to reinvent the art of selling and buying used treasures. They are combining their own business process with cell phone technology and creating a lucrative business for any person wishing to take advantage of their...

A Review of the Zija International Income Opportunity
By: Brian Garvin | 11/10/2008
There are many online income producing opportunities available. One of the simplest ways to make money on the internet is to sell someone else's products. There are two very common ways to do this. There are affiliate programs where you set up a website and install links to the product...

A Review of the ZibyCom Income Opportunity
By: Brian Garvin | 11/10/2008
ZibyCom is an excellent solution to providing the education that people need to be successful in today's world of technology. You can even make money by being a distributor of this excellent solution and take advantage of the many tools available to you if you decide to start your...

A Review of the Zavita Income Opportunity
By: Brian Garvin | 11/10/2008
Health products keep advancing with new discoveries and recipes. The world as we know it still holds many secrets that are being tapped and introduced as healthy alternatives for active lifestyles. Zavita, a home business opportunity, is one of the company's tapping the natural resources of our world. Zavita...

A Review of the Yves Rocher Income Opportunity
By: Brian Garvin | 11/10/2008
Yves Rocher is a company which sells all natural, botanical beauty products, including lotions, shampoos, skin care items, and cosmetics. The company has markets throughout Europe and North America and serves over 90 countries. Yves Rocher is a known to be a reputable company, as they have been in business...

A Review of the YTB (Your Travel Business) Income Opportunity
By: Brian Garvin | 11/10/2008
YTB (Your Travel Business) is a business that lets you know just that, it's a business that you will have to work and work hard. They are not afraid to let you know that. But they are also willing to teach you and be your mentor, to help you reach...

A Review of the Youngevity Income Opportunity
By: Brian Garvin | 11/10/2008
As one generation comes of age, the one before it starts worrying about things like the ravages of age and issues concerning poor health! There are plenty of people who are concerned about their health as they get older, and this is definitely one field that many different entrepreneurs...

A Review of the Young Living Essential Oils Income Opportunity
By: Brian Garvin | 11/10/2008
Young Living Essential Oils is a company which produces, markets, and sells natural products that focus on beauty and well-being. The company is the largest of its kind when it comes to essential oils. Founded by Gary Young, the company offers an opportunity for individuals to become distributors. The company...

More from Samuel Martin

Web Sites Level Playing Field in Business
By: Samuel Martin | 12/10/2007 | Online Business
For many years, only the largest companies had the resources to attract and serve customers all over the world. Now, thanks to technological innovations and the Internet, small businesses are able to offer the same high-quality services and compete on a global scale.

Touchscreen Technology: a New Gateway to Products, Services
By: Samuel Martin | 12/10/2007 | Communication
Frequent fliers know that checking in for flights is much easier and quicker today thanks to self-serve kiosks that enable users to zip through the process with the touch of a finger.

Writing Wrongs: Editors Help Students Avoid Costly Errors
By: Samuel Martin | 12/10/2007 | Education
College students struggling to write the perfect paper often turn to friends or parents for help in correcting everything from punctuation to syntax errors to misspellings. Chances are, however, that unless Mom and Dad are working for The Washington Post, some things are going to fall through the cracks, and junior may be less than thrilled with his final grade.

New 'diamond' Vodka is a Cut Above the Rest
By: Samuel Martin | 12/10/2007 | Business
You've seen vodka made with vanilla, raspberry and even pepper. But for those with caviar tastes, one company has introduced a new twist: diamonds. New to the premium vodka category is DIAKA (an acronym for "diamond vodka"), which is imported from Poland and filtered with actual diamonds.

Roll-up Bag Irons Out Wrinkle Problem
By: Samuel Martin | 12/10/2007 | Business
Savvy travelers know the trick of rolling their clothes when they pack to reduce wrinkles and save space. This usually works for smaller, casual articles of clothing, such as tops and jeans. But what if you had to pack a suit? And if you are taking a short trip for business, how do you fit your business attire into an overnight bag that you don't have to check?

Give Dad the Gift of Technology
By: Samuel Martin | 12/10/2007 | Business
Dad will always appreciate the dress shirt or cologne that you normally give him for Father's Day. But this year, why not break from tradition and give him an electronic gift that will help him step squarely into the 21st century?

Where to Get a Free Ipod, Find Other Giveaways Online
By: Samuel Martin | 12/10/2007 | Marketing
Since Apple's iPod came onto the scene in 2001, tens of millions of the popular music players have been sold. If you wish to join the mass of iPod devotees, a new one will set you back about $200 or more.

Boating Industry Launches Marketing Campaign
By: Samuel Martin | 12/10/2007 | Marketing
For the first time in U.S. boating history, marine products manufacturers will spend millions of dollars promoting the benefits of recreational boating and boat ownership. The National Marine Manufacturers Association's "Grow Boating" campaign and $12 million marketing blitz includes national advertising buys, direct mail and other initiatives that the industry hopes will connect with potential boaters whose free time is growing more fractionalized.

Article Categories






Give Feedback

Sign up for our email newsletter

Receive updates, enter your email below