Top Myths about Oil and Gas Debunked

Top Myths about Oil and Gas Debunked | Insights | DW Energy Group

Today, the United States is experiencing an energy boom, with oil and gas drilling at its forefront.  This is something that every American should embrace, as the abundance of oil and gas is a trend that will truly benefit everyone. 

To give you an idea of just how beneficial oil and gas can be to our economy, oil powers the machinery that is needed to extract raw materials such as lumber, iron, natural gas, or uranium. Oil powers the equipment in the industrial farm that produces abundant food. It powers the millions of vehicles that are responsible for moving our economy. It powers all construction equipment that is used to build every dam, home, factory, and levee. 

Needless to say, oil is unmatched as an affordable, concentrated, and safe source of energy. It is also the base of countless products – from the insulation on your walls to the carpet on your floor, from the fertilizers and pesticides that are used for life-saving pharmaceuticals to crop yields. 

Below are some of the common myths about oil and gas. Let’s examine them.

1. Oil is finite, and the majority of wells are dried up

Economists and scientists have long claimed that oil will soon run out. It doesn’t. Some wells have been drained, however, there is still an abundance of unextracted oil. The likelihood of discovering extractable oil becomes greater by drilling in close proximity to oil-producing wells. 

In any market, the prices go up when available supply decreases and demand increases. Hence, oil companies have found better means of locating and extracting oil. In time, the ‘impossible’ oil from yesterday becomes the ‘easy’ oil of today. In addition, entrepreneurs have learned to leverage new technology to locate and extract oil in wells that were previously thought to be dry.

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2. Oil can easily be replaced with more “environmentally-friendly” sources

The world’s energy is reliant on fossil fuels – in fact, it supplies about 80 percent of the world’s energy. In contrast, “environmentally-friendly” sources such as solar, wind, and biofuels, supplies a meager 2 percent of the world’s energy – and this is after more than three decades of subsidies worldwide. There is no sound evidence that ‘green’ energy sources can deliver the attributes necessary to give energy on an industrial scale.    

For many industries, there is no reasonable replacement for oil and gas, which is responsible for producing millions of essential products we benefit from everyday. 

3. If the price of oil drops, I might lose my investment

Market prices have always fluctuated, regardless of the industry. Depending on the structure of the oil company you have chosen to invest in through a direct participation program, oil wells can still give you profitable returns even when the prices are low.

Investing in oil and gas has tremendous financial upside. Savvy investors are now abandoning the investment mainstream to take advantage of the unique set of opportunities that oil and gas investing provides – long-term passive income, significant tax benefits, high ROI potential, and portfolio diversification.

The world needs massive qualities of oil and gas for decades to come. With expert assistance, any qualified and approved investor can get involved in this lucrative investment opportunity. If you are a serious, qualified investor looking to diversify outside of low-yield or conventional investment opportunities, get in touch with us
 

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Sources:
“Will the World’s Supply of Oil Run Out?,” Thought Co., https://www.thoughtco.com/we-will-never-run-out-of-oil-1146242
“Fossil Fuels,” Environmental and Energy Study Institute, https://www.eesi.org/topics/fossil-fuels/description
“6 Questions for Environmentalists On Earth Day,” Fox News, https://www.foxnews.com/opinion/6-questions-for-environmentalists-on-earth-day