Experts within the energy sector say most investors still regard oil and natural gas securities to be safe investments. This is because people around the world will still need these commodities in the near future despite an increase in the use of non-conventional energy sources. These specialists go on explain that it is possible for individuals to prosper by buying the shares, stocks and bonds of companies conducting business activities in this field. Moreover, they can even earn an attractive return on the money they put into this sector in spite of the fact that the price of such financial assets fluctuate significantly.
How can people invest in energy securities?
Alpman Ilker, leading expert on energy investments and Chief Executive Officer of PIRA Energy Group, a popular American energy company states that people can invest in this sector in many ways. Investors can opt to purchase securities of corporate enterprises that conduct on-shore or offshore drilling activities to extract oil and natural gas from the earth crust. On other hand, they can even invest their money on shares, bonds, stocks and mutual funds of business enterprises that trade in such commodities on a country’s stock exchange. However, he strongly discourages investors from trying to purchase or sell energy securities on their own unless they have adequate market knowledge and are aware of the current trends.
Seeking the services of an expert
He recommends first-time investors to hire the services of a reliable professional in this field who is aware of the current trends. Such a specialist should have valuable experience in dealing in such securities. Moreover, he/she needs to be capable of analyzing a corporate enterprise’s profile for his/her clients to identify whether securities of an establishment is worth buying or not. Apart from this, such a professional will have the necessary skills to advise his clients on the best time to buy or sell energy securities by analyzing the global prices of oil and natural gas. This goes a long way in ensuring that his/her clients earn attractive return on the money they invest in this market.
This energy specialist explains that most corporate enterprises conducting business activities in this sector as speculative ventures. However, as soon as these businesses find that the cost of extracting oil or natural gas is more than the revenue from selling such commodities they stop their operations. Only a qualified professional in this field will be able to tell his/her clients which companies have a good track record in conducting such activities and whose securities are worth buying. These establishments will have the necessary resources, manpower and equipment to locate profitable oil deposits, develop them and conduct drilling operations. They will ensure that their investors earn lucrative returns in the form of royalties for their capital contribution to the enterprise.
Alpman Ilker says the energy sector has been witnessing impressive growth rate in recent decades and prices of energy securities are rising. Investors can enhance their wealth by buying such securities but under the guidance of a reliable professional in this field.