Pros and Cons of Oil and Gas Investment

27 December 2018

Gas and oil are commodities that will always be in demand globally. No matter where you are in the world, people seem to be needing oil and gas more and more, be it for transportation, to run businesses and factories, and machines, and to do daily tasks such as cooking. Because of its increasing demand, it’s a highly favored investment choice by business owners and investors around the world. However, as with all other industries, the petroleum industry does have its pros and cons. Here are some of them:

The Pros:

1. There Are Tax Benefits And Advantages:

Naturally, economists and the respective governments encourage investors to put their money in the energy and petroleum industry. The more businesses in the energy sector, the higher the demand for this commodity, as the price per barrel of oil also tends to stabilize more. Remember this is important as almost all aspects of man’s daily life are highly dependent on the energy and petroleum industry.

To encourage investors to stay attracted to gas and oil businesses, governments provide for annual tax benefits and deductions. Some of these include the following:

When you invest in a limited liability partnership/gas company, such as the CEFM Oil & Gas Investment Fund, 15% of your share can become a part of your tax-sheltered income, which means that this 15% of your total stock will not be subject to taxes.
In the event of stock depletion, governments can allow for certain allowances to keep your company’s cash flow reports stable.

2. The Gas and Oil Industry Is a Lucrative Trade:

Gas and oil are both commodities. You cannot go through your daily life without either of these two. Even the simplest and most rural forms of living require gas, such as lighting up gas lamps at night. At present, the petroleum industry makes up 10% of the total gross domestic product of the world, representing an amount of around $10 trillion. This figure does not end here, as it is bound to grow even more as the global population increases in number.

3. The Rate of Return on Investment Is High:

Economists around the world found that the return on investment from oil and gas companies is usually around 5 to 10 times more than the capital that you put in. It is tough to find any other investment opportunity that allows for the same favorable returns. When exploration of an oil reserve starts, profit can begin to accumulate after the first two months; this speed is unrivaled by any other business sector.

The Cons:

1. There Is a Limit to Growth:

Oil and gas reserves are not taken from a renewable source. Eventually, the time will come when these resources will be fully depleted. As the demand for oil continually increases by the day, so does the rate of these reserves eventually being maximized and fully depleted. You can only do so much.

Further, this industry needs to fulfill a lot of environmental responsibilities, such as the rehabilitation of the reserve that was drilled up for oil explorations. Doing this entails costs for the company.

2. There Is a Huge Political Risk Involved

Because oil is a commodity, it is but natural that political governments intervene. As much as they would want to protect a private company’s interests to make sure investors in the market will stay, they are also protecting their political interests. Therefore, any change in trade factors concerning political state agreements, tax reform laws, treaties, and the like will significantly affect the price and stability of the oil. This would mean that you cannot ever shy away from any involvement of politics in your business if you decide to invest in the petroleum industry.

3. The Market Price of Oil Is Always Fluctuating:

As more and more individuals demand gas and oil, its market price will continue to fluctuate as well. Increased demand for goods will increase the supply; hence, the competition is high, so the costs have to decrease. This economic fact is good for the consumers but bad for you as the business owner. Profit is always what you have in mind, and in the oil industry, there is a ceiling as to how much you can increase the price of gas and oil.

Conclusion:

As lucrative as the oil and gas trade may be, do remember this list of its pros and cons. The disadvantages are not to discourage you from investing in this business sector, but it will help you make a better and wiser decision on where to plant your hard-earned money. Anchoring your investment in an informed decision will help you earn better growth on your commodity investment plan.

Read Also:

Ariana Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

View all posts

Top 10 Zoho Alternatives in 2020 For Your Business To Adopt

Zoho is as yet one of the most unmistakable CRM platforms out there, however that doesn't imply that it's consistently the most ideal alternative for client relations executives. While it's viewed as truly outstanding and most moderate choices by many, there are still a lot of reasons you may need or need a decent Zoho alternative, particularly as your business keeps on developing and you need more refined features with regards to contract layouts or invoice formats. These choices are intended to be anything but difficult to utilize, available, and work for a wide scope of various business and pioneering styles. Thus, regardless of whether you're searching for a substitution for your current record or are searching for a Zoho choice to kick you off, these are probably the most ideal choices. Let’s look at some of the best alternatives to Zoho. 1. Bonsai Bonsai is the best in general Zoho alternative in case you're searching for something to supplant a current record or have assessed Zoho and chosen it's not for you. The 14-day free preliminary is more than sufficiently long to get a feeling of whether the platform accommodates your style, and whether the instruments merit the spending of $19/mo to have. Bonsai has the upside of offering boundless customers and activities, which lets it scale with your business for more powerful administration. It additionally gives you admittance to agreements and recommendations the executives apparatus that makes it easy to make clear desires for each task you choose to take on. Time tracking software and the board make it easy to keep steady over what you're doing during that time and to discover better approaches to improve your work process. 2. ProofHub Proofhub offers two distinctive membership levels, yet the most moderate variant of this software comes to $45 every month, bills yearly. This is an incredible community-oriented platform for your group, regardless of whether you're all working in a similar office or are spread the nation over. It incorporates significant programming like time tracking and verification and endorsement frameworks that help clarify where your consideration is required, and when. Undertaking the executive's devices join with a schedule and simple talk features to make it easy to connect and make fixed basic task objectives are met on schedule. 3 Moon Invoice Moon Invoice is right there on top of the list of being the top alternative to Zoho. Moon Invoice has been developed to fill the gap of invoicing in every possible sense. Invoicing can take a huge chunk of your time and Moon Invoice understands it perfectly. Best for small businesses to large scale businesses, Moon Invoice doesn’t shy away from delivering elusive features to manage your finances, accounting, reports, keeping time logs, and everything in just one platform. Moon Invoice has different subscription plans for your business requirements. Various plans that come with significantly better results and lesser cost marks as one of the finest invoicing solutions. The score is a decent alternative for moderate-sized groups who need a shared climate that assists with smoothing out errands the board and undertaking arranging. The framework scales in cost, so the more features and progressed programming you need, the pricier it can turn into. The 5 colleague least additionally implies that Scoro is definitely not a decent choice for solopreneurs and little group organizations, and the cost can swell at the opposite finish of the range also. It's likewise important that a few features have their own expense, additionally determined per-client, which can expand the general cost of the stage. That membership style likewise makes it less difficult to add extra instruments and access just to the colleagues who need it, however, which can reduce expenses. All things considered, features like the undertaking load up, organizer, and schedule welcomes make cooperation straightforward, particularly in case you're working with a period of separation hindrance between colleagues. Score additionally assists with overseeing bills and funds, with even the most minimal membership levels giving important money-related trackers and bits of knowledge to make business arranging simpler. 5. Insightly Like a few of the projects on this rundown, Insightly comes at a few diverse membership levels, permitting you to scale the features and usefulness of the software to meet the needs of your business as it develops and grows. It's cross-platform viable, even at the most minimal membership level, which implies that you can get to your Insightly instruments on a more extensive scope of gadgets, making it simpler to keep an eye on things when you're in a hurry. High membership levels take Insightly past an essential CRM, giving you admittance to extra devices to help drive and track deals, just as experiences into what is driving changes for your business. 6. Clarizen In case you're searching for a big business class venture the board devices, Clarizen is one of the better alternatives out there. The multi-day preliminary on this instrument, similar to different platforms that offer a more extended preliminary attempt, truly encourages you to become more acquainted with the benefits of this device. The incorporated framework makes it simpler to get to and compose a few unique tasks immediately, all inside one shared group climate. You can likewise assign separate zones for various groups and tasks. Add to that the capacity to organize and sort out basic assignments, and even entire ventures and portfolios, and this makes managing bigger associations a lot less complex. In any case, that per-client cost implies that the expense can swell after some time, particularly at higher membership levels and with enormous groups. 7. Copper Copper has three distinctive membership levels, and you can buy in with month to month or yearly billing. However, taking into account that even their base level membership accompanies boundless clients and boundless undertakings, this is a shockingly reasonable Zoho alternative. The greatest impediment of the base membership is that you just get 10Gb free extra room. The instrument permits you to bring together the entirety of your task archives just as demonstrating a communitarian climate that makes it essentially simpler to monitor various individuals and groups inside your association. The intuitive schedule is moderately simple to utilize, while errands and clock capacities help to keep everybody on target and composed. It additionally makes it simpler to consider your group responsible for their advancement toward basic task objectives. Sadly, the base membership rate doesn't give you admittance to Copper Project's telephone support, yet the mid-level membership does, alongside a few extra apparatuses, and added stockpiling in the Cloud. 8. Celoxis There are two unique approaches to buy into Celoxis, a Cloud form (cited above) with month to month and yearly membership styles, and an on-premise rendition where the software is introduced straightforwardly on your own workers. The on-premise alternative is a one time $450 expense, yet there are extra costs you might need to buy in to, such as progressing support and investigating from the organization. 9. ActiveCollab ActiveCollab is an intriguing stage with regards to that it interfaces with Quickbooks, giving you some extra usefulness on the off chance that you decide to utilize it. ActiveCollab is likewise extraordinary in that as opposed to offering a few genuinely unmistakable membership levels, it has a base member with a $4 every month extra membership you can add when you need it. You can't get the extra membership without the base bundle, yet you additionally don't need to stress over losing significant features or capacities simultaneously. 10. Bitrix24 Bitrix24 is an entirely versatile software that begins by offering a completely free form for private ventures and solopreneurs, however, that can develop to help boundless clients and undertaking estimated groups. Bitrix 24 offers a wide scope of various features, including on the web-store support, differing levels of free cloud-based capacity, and CRM advertising solutions. The specific features you get, and how helpful they can become, relies generally upon which membership level you pick. Bitrix24 is so feature-rich that it can on occasion be a drawback of this stage, just because it has a precarious expectation to absorb information and takes a decent cycle of involvement to figure out how to use all the software's features viably. Conclusion While we remain by each stage in this rundown similar to an extraordinary choice, and an incredible Zoho alternative, these are the best choices. Simple to utilize invoices, managing your finances in one place, all of these can be done easily. Choose from one of these invoicing solutions for your business and start invoicing. Read Also: 9apps – An Alternative Other Than Google Playstore

How to Make Your Store Look More Put Together?

As a store owner, you may have spent months or years trying to perfect the look of your store. You have found the best location, put effort into design, and maybe put a garden landscape outside. But what else is it missing? Why does it still look bland in comparison to others? Follow these tips below to accentuate your store and attract more customers. How to Make Your Store Look More Put Together: Focus on Branding: One thing that can set stores apart from each other is branding. You need to be top on every aspect of your brand. This includes social media, website, logo, packaging, ads, and the person who will represent your business (yes, this could be you). Good branding will set you apart from the competition. When people look at your store, they need to know what your company values are or what your brand is. Your branding should be able to tell the story of your company. Not only that, but branding also improves customer pride. It creates this sense of confidence that what they’re buying is something that they can wear, share, and put out in the world. Be More Visual: Humans love colors and visuals to entertain their eyes. So give it to them. There are many times where stores don’t have exterior and interior decorations. Getting large print outs that show your services or products is a great way to introduce your company without even opening your mouth. Print Leaf has excellent large format printing NYC that can help make your store look better and attract customers. Getting large format printing NYC can change your stores look from typical to an actual business that people want to shop and refer to their friends. Print Leaf does all types of printing from banners to whiteboards, to floor decals, two window decals, you name it, and they got it. These large format print outs will also serve as your advertising medium to locals. These can easily reach locals who commute and live in your locality. You’ll get more impressions and be able to introduce your products in a very affordable way. Standardize Your Customer Experience: One thing that is important to make your business stand out and look more put together, it’s standardizing your customer experience. This is to make sure that when the customers are coming, they have the same experience every time. This experience needs to be a good one. However, you need to make sure that your store is the same every single time. People who are walking to your store want to expect the same quality service every time. You need to make sure that your employees are on point with your ideas. In other words, they need to represent you. Standardizing your store will get your business to scale up if you have plans of opening more branches in other locations. Setup a Seating Area: Benches and chairs are very welcoming. It feels as if they invite people to come inside the store. This also offers comfort to customers in queue This article is intended to give you great tips on some of the ways you can make your store look organized, making sure you stand out. Read Also: Tips On How To Create Repeat Customers 7 Ways To Communicate With Customers In A Better Way!

Top 3 Dropshipping Marketplaces: Pros And Cons Of Each

Dropshipping is a trendy business model that has already attracted about 78% of retailers in the USA that implements some form of it; the market is going to reach $240 billion in 2023. The main difference to the standard sales model is that dropshipping is an e-commerce business model that shifts all production and delivery responsibilities to the Supplier or Manufacturer. At the same time, a Dropshipper is responsible only for the online store. After a drop shipper finds a trustworthy supplier, his main task is organizing an online store. The online store can be created on a relevant marketplace or a separate web resource. In each case, it should be prepared with all information, including pictures or videos of the sold goods and possibilities to make an order for Customers. This article is aimed at marketplaces, which one to choose for dropshipping for placing your online store. Marketplaces also can be used for searching for suppliers and manufacturers. Main Requirements For Dropshipping Marketplaces The main value of drop shipper work is an online store. Customers first choose the website for order and with high competition of Internet proposals, attracting customers to visit and stay on your website is essential. Marketplaces are perfect e-commerce platforms for beginners as they have many tutorials and advice on starting a dropshipping store. It is recommended to choose a dropshipping marketplace based on the following parameters. The fee for launching your website; User-friendly navigation with all required plugins; Customer traffic for your chosen niche; Possibility to use software for listing, design templates, order fulfillment, and delivery tracking; Integration with other marketplaces for easy creation of product descriptions; Integration with website builders or content management systems (CMS); 24/7 technical support. Top 3 Dropshipping Marketplaces Based on the described parameters, the top 3 dropshipping marketplaces are listed below. You can place your products on all three to find your audience or choose the one suiting your requirements. eBay eBay is one of the biggest marketplaces where you can buy everything except tobacco, alcohol, lottery tickets, and other goods. The most popular categories are face masks, smartphones, men's accessories, and video games. With dropshipping on eBay, you can access its massive auditory without effective marketing campaigns. Their auction site attracts thousands of customers. This marketplace is recommended for small dropshipping companies starting the business, as they propose fewer investments. All subscription plans are based on the insertion fee with a limitation of listings, a fee after the transaction based on the sale price, and a fee per order. The basic store fee with 250 listings is $21.95. You can find more detailed information regarding fees and requirements for setting up the store in this guide. Pros ● eBay does not require to have storage of goods for selling ● Plenty of applications are available for automatization and setting up the store ● Marketing campaigns are not required in the initial stage of setting up the online store ● Possibility for easy business expansion ● Easy to get started ● eBay has a lot of tools for marketing campaigns Cons ● Strict dropshipping rules ● Difficult to find a supplier fulfilling all eBay requirements ● To be rated as a reliable seller on eBay, you need to have already positive reviews and a proven sales record ● eBay does not allow to drop ship from other marketplaces ● Intensive competition Shopify Shopify is one of the most popular dropshipping platforms hosting 500.000 e-commerce stores worldwide. To start selling there, you need to pay a basic subscription for $29 for a domain name, the quantity of sold goods, and additional features (such as gift cards or reports). Plus, you must pay 30 cents per transaction for each tariff plan. For beginners, you can choose a 14-day free subscription. However, with growing your business, you need to change subscriptions to other plans to increase staff accounts and inventory locations. You should pay additional expenses for customization and automatization; most of the required applications are not free. But the paid money is worth it; numerous apps for setting up the online store with fully customizable themes exist. In addition, many marketing tools are available for Shopify to start selling as quickly as possible. Pros ● Availability of different tariff plans starting from $29 ● User-friendly interface with prefilled pages ● Integration with most dropshipping apps (Oberlo, MXED, Spocket) ● 24/7 email, phone, and chat support ● A large community of drop shippers using Shopify ● 14 days free trial ● Quick set up of an e-commerce store Cons ● The advanced package is expensive $229 ● High competition ● In addition to a subscription, you need to pay for each transaction WooCommerce Five million people already use this plugin, and you can also dropship there. It has a special WooCommerce Dropshipping application to manage all activities from there. You can quickly start your online store there, even alone. WooCommerce recommends using WordPress plugins and extensions for setting up the website. WooCommerce does not recommend dropshipping from eBay or Amazon, as you will meet massive competition with the same goods on this platform. The possible suppliers could be found on Amazon, SaleHoo, or simply in Google. The WooCommerce plugin is available for free, but you need to pay commissions for a domain, host, extensions, and security. Unfortunately, to set up the store, you need time from days to weeks, as you need to install all required applications and go through the delivery policy. Pros ● Many apps and plugins are available for website creation and automatization ● The WooCommerce fee depends on your business capabilities and needs ● WooCommerce supports all payment methods ● Market integration with all leading platforms ● The store design is executed through a WordPress plugin ● Open-source software and fully customizable Cons ● Tools are required to set up the store (WordPress, WooCommerce Dropshipping, WooCommerce Lead Time, etc.) ● Requires significant time for setting up the store ● You need to have skills Conclusion The marketplaces help to simplify the creation of an e-commerce store, but all work for its marketing and maintenance you should keep to yourself. Do not forget about SEO campaigns, advertisements in social networks, email campaigns, and other tools to attract your targeted audience. If you, in addition to the product description, add to your helpful website information, research, or comparisons of why your products are good, this will significantly increase the value of your goods. Proper supplier is another milestone for your business, but you must check the Supplier based on the desired marketplace requirements. Finally, marketplaces are significant helpers in setting up a business for newcomers, especially Shopify, WooCommerce, or eBay. They have all the tools for easy creation of the business process and start selling online. But you need to pay subscription fees and purchase applications for proper customization. Read Also: How To Get Product Ideas For Your Ecommerce Business Strategies For Running A Pet Supply E-commerce Store Recognizing How Important Inventory Management Is To Your E-commerce Store

Pros and Cons of Oil and Gas Investment

The Pros:

1. There Are Tax Benefits And Advantages:

2. The Gas and Oil Industry Is a Lucrative Trade:

3. The Rate of Return on Investment Is High:

The Cons:

1. There Is a Limit to Growth:

2. There Is a Huge Political Risk Involved

3. The Market Price of Oil Is Always Fluctuating:

Conclusion:

Ways to Get Dry Cleaning Services at a Low Price

How to Retain Your Top Employees While Growing Your Business

Tags

Ariana Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

Leave a Reply Cancel reply

Popular

Technologies For Creating A Startup Idea

How to Download Facebook Videos on Android?

7 Rules of Effective Ecommerce Web Design

The 10 WordPress Plugins Every Sucessful Blogger Uses

Follow Us

Recent

Choose Quality Car Hoists From The Premium Car Tools Suppliers

51 Blue Collar Jobs/Career Options To Pursue If You Get Laid Off From Big Tech In 2024

How To Use AI Copywriting For Small Businesses

Moreno Valley Plumbing Pros: Your Reliable Plumbing Experts

Related

Top 10 Zoho Alternatives in 2020 For Your Business To Adopt

How to Make Your Store Look More Put Together?

Top 3 Dropshipping Marketplaces: Pros And Cons Of Each

Pros and Cons of Oil and Gas Investment

The Pros:

1. There Are Tax Benefits And Advantages:

2. The Gas and Oil Industry Is a Lucrative Trade:

3. The Rate of Return on Investment Is High:

The Cons:

1. There Is a Limit to Growth:

2. There Is a Huge Political Risk Involved

3. The Market Price of Oil Is Always Fluctuating:

Conclusion:

Share this Article

Ways to Get Dry Cleaning Services at a Low Price

How to Retain Your Top Employees While Growing Your Business

Tags

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

Leave a Reply Cancel reply

Popular

Follow Us

Recent

Related