Before You Invest in Oil and Gas

Whether you are a seasoned oil and gas expert or investing in oil wells for the first time, there are several things to know  to help you make informed choices and protect yourself against fraud. Oil investments can be a very lucrative piece of any portfolio if executed with the proper knowledge and strategy. CEFM’s team of experts is here to assist every step of the way. 

Oil and Gas Investment Education

Before investing in oil wells, it’s crucial to thoroughly educate yourself on the industry and its processes. First, learn basic industry terminology. Then, understand how a well is drilled, risk associated with investing, and strategies to ensure long term success. 

Take advantage of online educational resources to understand the advantages of diversifying into oil and gas well ownership. One in particular is our Tax Guide which references tax codes on tax benefits associated with oil and gas investing.

Keep in mind that investing differs greatly from depositing money in the bank. Federal deposit insurance guarantees bank deposits up to a certain amount. The value of oil and gas well ownership can fluctuate drastically from original predictions and studies. There is no guarantee you will make money from your investments. Review this SEC article to know what questions to ask next.

For materials on current private offerings, please click the link below and one of our team members will contact you.

thinking about investing in oil
expert in oil investing

Know the value of analysis from oil and gas experts

Directly investing into oil and gas wells can be intimidating for “first-timers.” Even experienced investors sometimes struggle with evaluating prospects and making investments without emotions getting in the way. This is why CEFM works with industry experts with many years experience. We get analysis from world class geoscientist and reservoir engineers on each prospect prior to introducing to our investors. Our approach focuses on data and facts to educate investors on the potential risk and reward of each prospect. To learn more about what it takes to drill a well and our process of vetting wells, click the link below. 

Investment Objectives

It is important to communicate your own investment objectives to ensure our team understands your long term goals, tolerance of risk, and financial needs. We want to create long lasting relationship which is why we communicate with investors on what data shows is historically is the best way to approach oil and gas investing. 

Every investment in oil and gas wells carries some degree of risk. We do our best to bring investors the highest quality prospect. However, there is still no certainty in a return. Click below to learn more on how what to look for in each project and our recommended approach to investing. 

investing over multiple wells
oil and gas market ticker

Do Your Own Research

Investing in oil and gas can be a lucrative opportunity, but it requires due diligence and consideration of various factors. First, investors should evaluate the market dynamics of the oil industry. The price of oil is influenced by a myriad of factors, including geopolitical events, supply and demand fluctuations, and OPEC’s production decisions. Understanding these factors and their potential impact on oil prices is crucial for making informed investment decisions.  It’s essential to consider the economic environment and how it may affect the oil industry. For instance, during economic downturns, the demand for oil typically decreases, which can lead to lower prices and reduced profitability for oil investments. Conversely, during periods of economic growth, the demand for oil often increases, driving up prices and potentially yielding higher returns for investors.

Have a Long Term Vision

Considering the inherent volatility of the oil market, it is crucial to have a clear investment horizon and risk tolerance. Subsequently, long-term success in oil investing often involves patience and a well-informed approach, ensuring that investing in oil becomes a strategic and profitable venture. It’s important to assess the management team’s experience. A competent and experienced management team can navigate the complexities of the market more effectively and make strategic decisions that enhance profitability.  Moreover, investing in oil often requires a long-term commitment, and it’s important to assess one’s risk tolerance and investment horizon. Oil investing can be volatile, and prices can fluctuate significantly in response to various factors. Consequently, investors should be prepared for these fluctuations and have a clear understanding of their investment goals and risk appetite.

long term investing outlook