North Dakota Oil Fields offer a variety of oil investment opportunities available to the serious investor. Some oil investment opportunities in the North Dakota Oil Fields offer little risk but little return, while others offer higher risk but the potential for enormous returns as well as other advantages.
Investment Opportunities in the North Dakota Oil Fields
Mutual Funds. Mutual funds are one of the least risky oil investment opportunities in the North Dakota Oil Fields available to investors. Investing in a mutual fund, however, offers none of the tax advantages of other kinds of oil investment opportunities. Returns on mutual funds are also comparatively lower than other kinds of oil investment opportunities in the North Dakota Oil Fields.
ETFs and Traded Funds – The primary advantage of ETFs and Traded Funds is their ability to allow you to hedge against future oil price increases. Depending on your other investments, ETFs can be a strategically intelligent option among oil investment opportunities in the North Dakota Oil Fields. It is crucial, however, to understand the ETF’s structure prior to investing.
Stocks – One of the most common oil investment opportunities in the North Dakota Oil Fields and around the country is investing in stocks. Investing in the stock of major oil companies can offer better returns than mutual funds, but there is a lot of volatility in the market that makes this one of the more risky oil investment opportunities. It’s even more risky when investing in the stocks of small, independent oil companies.
The Real Opportunity of the North Dakota Oil Fields
Partnerships and Joint Ventures – Partnerships and joint ventures are among some of the best oil investment opportunities in the North Dakota Oil Fields in terms of payout and tax benefits, but those advantages come with higher risk. It is critical to understand the structure of the investment, the ownership per dollar, and the company’s history prior to investing in the North Dakota Oil Fields.
Working Interest – Similar to a partnership, having a working interest in a well is one of the more significant oil investment opportunities in the North Dakota Oil Fields available. While there is still risk involved, there is an enormous opportunity for large returns, short-term and long-term payouts, and generous tax advantages for the investor.
Opportunities for Land Owners in the North Dakota Oil Fields
Royalty Interest – Royalty interest is available to those who own the mineral rights to the land in the North Dakota Oil Fields where the well is being developed. While oil investment opportunities like this are beneficial primarily for landowners who make private land available for development, there is no tax benefit.
Leases– In conjunction with the many oil investment opportunities available to land owners in the North Dakota Oil Fields, the structure of the lease can be critical for ensuring how the benefit is structured, specifying who has the right to drill, how many wells can be drilled, and how quickly the wells must be developed.