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Keeping Renewable Energy Moving Forward

Oil Well Crowdfunding: If it doesn’t make dollars it doesn’t make sense

What risks and opportunities await a crowdfunding oil well investor? For one, crowdfunding allows investors to enter a market that was once restricted to elite levels of capital only. Crowdfunding allows investors to enter into the market collectively, which both mitigates the overall risk to the individual investor as well as giving them access to previously inaccessible market opportunities.

In terms of risk, oil and natural gas have little cause for concern because they are the primary drivers of modern economies. If oil production drops, prices go up; When oil production increases, the tendency is for the economy to be more productive, which results in more demand for oil and natural gas in general. Oil and natural gas are also seen as an issue of national security as any immediate restriction is a direct threat to the overall well being of any nation, be it from transportation, cooking or heating. With entire nations holding a vested interest in protecting and providing access, this is one of the most risk averse opportunities for investment out there.

Profits from oil and gas can be expected to pay consistent dividends but when events arise the affect the production of oil and gas, demand drives prices sharply upwards, exciting investors with immediate increases in capital.

Based on expert predictions, we are entering into an era of peak oil production as well as oil access. With this, reduced supply with ever increasing demands are sure to drive oil and gas prices skyward.

“… a sustained decline in global conventional production appears probable before 2030 and there is significant risk of this beginning before 2020… on current evidence the inclusion of tight oil [shale oil] resources appears unlikely to significantly affect this conclusion, partly because the resource base appears relatively modest.” Dr. Richard G. Miller

While renewable energy resources dominate media outlets as exciting areas of investment potential, the fact is that oil and gas make up 95% of the transportation market, providing resources to meet the demands of non-domestic transportation that moves all other resources across large expanses of land and sea. Electric vehicles run into an efficiency problem after a certain amount of weight to power provision is met, which typically peaks around 60 miles, after which, the cost of storing additional batteries starts to diminish performance while offering little to extend mileage. This isn’t so much a problem of innovation as it is a physical/chemical limitation of battery storage options. (We have maximized our capacity for energy storage in lithium-ion technology and there is as of yet no better chemical compound for retaining electric energy).

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