The Shale Boom And How Ordinary People Can Cash In

Today, there exist three possible methods for millions of ordinary investors to cash in on the new shale energy bonanza. The option any given investor chooses depends on how confident they feel in their own ability to choose and how much capital they can bring to the table. Each option has its own interesting aspects which may make it the attractive choice for the promise of maximum return.

The first of course is the pathway through the stock market. Such investments can involve the purchase of stock in a single large company or buying an index fund tracking a particular energy market sector. This allows the investor to purchase stocks in several related companies operating in the same field. Yields turn on how the sector, as a whole, performs through the quarter.

The second option is to purchase oil and mineral rights. Now, most property owners are aware of how valuable these can be and have secured those as part of the purchase agreement. However, there are still millions of acres of land out there where mineral rights were severed from property rights. Furthermore, these rights may have gone unclaimed for decades. Or, they may have been purchased long ago by a relative who also had the same idea to secure those rights for themselves despite not owing the actual land. A visit to the county courthouse to check land and mineral rights records may be worth the time. If great-grandfather bought those rights and the land connected with them is under production, then royalties are due to his heirs. If no one ever purchased those rights, they can be snapped up cheaply.

Finally, it is actually possible for anyone to own their own oil well! This is because Congress passed a law back in 2012 called the Jumpstart Our Business Startups (JOBS) Act. As part of this law, direct investment in oil and gas drilling wells for ordinary, accredited investors. For less than $15,000, it is now possible to buy a stake in an oil well or even multiple oil wells. As a result, the investor owns everything the well produces for as long as it is in operation. This means years of steady income and the ability to take advantage of energy-sector tax breaks, which can be quite substantial. Consult an investment broker for more information on these market strategies today.