Search:
BuxZer » Finance » Investing » The Future of Oil and Gas Investing
The Future of Oil and Gas Investing
View PDF | Print View
by: treychristian81
Total views: 24
Word Count: 499
Texas oil investment is as
old in tradition as Texas oil drilling itself. It’s an historic endeavor that
helps define Texas. The proud oil drillers of the past stem back to the days of
the “old west” and up to the glory days of lucrative Texas oil in the early
20th century. However, the pursuit of fossil fuel reserves is not the same as
it was in the old days. Today the technology exists that enable a company to drill
and extract much more oil from a single reservoir than was ever possible
before, and new techniques allow for the capture and transport of natural gas
associated with crude oil.
Oil and Gas Investing is Once Again a Profitable Opportunity
Because of newer and more efficient drilling techniques such as horizontal
drilling, more oil can be extracted from a single reservoir. And one of the
by-products of oil drilling is natural gas.
Similarly to opening a bottle of cola, natural gas is released from a crude oil
reservoir when it is tapped. However, in the past this was mostly a wasted
product. If there was no market or user near the well, the natural gas
by-product was burned off. Because of its gaseous state, natural gas had to be
piped to the end user, and that just wasn’t cost-effective with most crude oil
reservoirs.
However, new technology has been developed that can capture natural gas while
drilling for crude oil. This is big news for oil and gas investing, and for
those companies that can use the technology to harness and sell natural gas.
The Fischer-Tropsch Solution
The solution is to change natural gas into a liquid form which can then be
extracted and transported via tanker trucks. A process known as the
Fischer-Tropsch process uses a catalyst to transform gas to liquid. This
chemical reaction process changes natural gas into a liquid form of various
hydrocarbons later usable as transportation fuels, also known as biofuels.
Oil and gas investing can be much more profitable with the capture and use of
natural gas as a biofuel. Automobile makers are now manufacturing more cars
that use biofuels such as natural gas as a result of consumer demand. In fact,
2007 saw over $4 billion invested in biofuels. In 2008 about 1.8% of the entire
world’s transportation fuels was from biofuels, and is expected to continue to
grow. The result is a huge demand for oil and gas investing and companies to
supply the biofuels needed to propel these vehicles.
Other uses for natural gas include electricity generation with gas turbines,
domestic use including home heating and cooking, fertilizer, and
hydrogen-powered aviation. So you can see that natural gas is becoming a big
market. Take a look at companies that are now using these oil drilling
techniques to extract natural gas as well. Your oil and gas investing endeavors
could result in big profits, and serve a much-needed clean-fuel market.
About the Author
Take advantage of the current investing environment and learn more about how you can make oil and gas investments work for your portfolio. Visit CBOenergy.com to view profit reports and interactive presentations on oil investing.
<< Next Article || Previous Article >>
Rating: Not yet rated