Why Chose an Oil or Gas Investment?
Member FINRA, SIPC
Red River Securities, LLC, Oil & Gas Exploration & Development, Plano, TX

Why Oil & Gas

Future Demand

Future Development

 
 
 
 

  • Potential gain from direct participation in oil or natural gas exploration and production revenues remains one of the few long-term opportunities outside of the stock market and speculative real estate ventures available for the individual, private investor. With new found life in the domestic push for energy independence, it is our belief that natural gas is coming to the forefront as a clean, environmentally friendly, and abundant source to meet both consumer and industrial power consumption demands.

    Oil and Natural Gas Opportunities

    Oil and Gas opportunities have the potential to be profitable for the individual, private investor well into the future. According to the Energy Information Agency of the U.S. Department of Energy in their Annual Energy Outlook 2009 with Projections 2030, “Unconventional natural gas production increases from 47 percent of the U.S. total in 2007 to 56 percent in 2030,” and, “Natural gas in tight sand formations is the largest source of unconventional production, accounting for 30 percent of total U.S. production in 2030, but production from shale formations is the fastest growing source. With an assumed 267 trillion cubic feet of undiscovered technically recoverable resources, production of natural gas from shale formations increases from 1.2 trillion cubic feet in 2007 to 4.2 trillion cubic feet, or 18 percent of total U.S. production, in 2030.”

    While expected growth in natural gas production is far from certain, the potential is there, especially if the U.S. economy experiences a modest annual growth rate over that period of time.

    The Need for Oil Should Remain High

    With reduced dependence on the import of foreign oil and the new energy technologies in development, the need for exploitation of domestic oil reserves remains necessary. While demand for oil for transportation and heating is top-of-mind for the general public, its use in manufacturing is ubiquitous and far reaching. As featured in the publication, Oil and Natural Gas, presented by the International Society of Petroleum Engineers, petroleum derivatives are primary components in nearly all items within a home. In addition to countless plastic objects, there are drugs, cleaning materials, clothes, cosmetics, glues, clothes dyes, footwear, and much more. The majority of the polymers, the molecular structure that gives plastics and synthetic fibers malleability, are produced from oil and natural gas.

    Scientists use the hydrocarbons in oil to create essential components in nearly every area enterprise. These polymer based materials include; the tough, yet soft and flexible Polyethylene, and its dirivities, especially tough HDPE (high density polyethylene), and light, flexible, transparent LDPE (low density polyethylene), PVC (polyvinyl chloride) one of the hardest plastics, Polypropylene a rugged solvent and acid resistant plastic, flexible hard clear Polystyrene, and high temperature and break resistant Polycarbonate. Clearly, our society’s need for abundant production of petroleum is anticipated to continue well into the future.


     

    • Red River Securities, LLC is a registered broker/dealer and member of the Financial Industry Regulatory Authority (FINRA).

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  • Disclaimer: This content is provided for informational purposes only. Information herein is not intended to be a solicitation of any kind. Nothing herein shall be construed as tax, legal or accounting advice. Investing in oil and gas is highly speculative and could result in substantial losses. Potential investors should consult their attorney, accountant and financial advisors before investing in oil and gas. Past performance is not a guarantee of future performance or returns.