Myth #1 – I am stuck and can't sell my interest if I invest in an oil well.
As a company stock is proven by its cash flow, so is an oil well. For this reason your interest is very sellable because it has a proven cash flow record.
Myth #2 – I will lose my investment if the price of oil decreases and my well has low production.
Today's marketplace has to be catered to because of the need for energy consumption. If oil prices drop due to low oil production, a well can be turn off. In the oil business the market always cycles back to profitability and the well can be turned on again.
Myth # 3 – The life span of an oil well is short.
Based on the overall performance of oil wells over the years, they tend to have a long life span. They perform best at the initial drilling, but can continue to produce oil for as long as 50 years without prompting.
Myth # 4 – There is a liability factor, as drilling oil wells is dangerous.
When you invest in oil there is an agreement drawn between you and your oil operator stating that you are not liable for any oil well or oil operator actions. You participate in the outcome without assuming the liability.
Myth #5 – After starting an oil well it gets expensive.
The oil operator is interested in lucrative returns, therefore he factors in all costs upfront for preparation, drilling and completion. After a year or so, minimal maintenance is required.
Myth #6 – When I am asked to invest into an oil well, the operator knows the well is not good.
Even the major oil companies are uncertain as to whether or not a well will produce oil. That why they share in the risk and the profit of a drilling. It's best to invest in oil for more than one well.
Myth #7 – If you are offered an oil well investment opportunity, it is a scam.
Doing the proper research is the key to safe and legitimate oil investing. When you take the time to educate yourself before investing in oil you will find the experience to be more rewarding and you will have a sense of security in knowing what your investment is covering. It also minimizes your risk.
Myth # 8 – Most oil wells are a dry.
To have the greatest opportunity for a return on your investment, developmental drilling would be your best bet. You want to drill as close to existing oil fields or oil wells as possible. This will put the odds in your favor and ups your success rate for striking oil and gaining a lucrative return on your investment.
Myth # 9 – It is more profitable to buy stock in a major oil company from my stock broker than to invest in an oil well.
Actually, your oil well investment will prove more profitable over time because you are participating in the production of oil, which is the whole point of oil investing. Your investment is focused on the oil produced from the wells, rather than the operation of the oil company.
Myth # 10 – You can lose your investment.
Avoid doing deals that are not registered with the SEC and FINRA. When you invest in oil you must be aware of predators for the protection of your investment. You can become a perceptive and well informed oil investor by knowing what to avoid.
If you have any questions about oil investing please feel free to call Glenn Texas Oil anytime at: 1(888) 406-1734.