Investing Basics: What are Oil and Gas Investments?

By Elsie Dudukovich1 Comments

Since crude oil and natural gas are valuable resources, they offer appeal and potential as investment opportunities.  The oil and gas industry is complex and multifaceted; the investment options follow accordingly.  Investing directly into a drilling company or a company that provides services within that industry is one type of investment.  Investing into energy related stocks or within the commodities markets is another way of investing in this industry. 

These markets can be confusing for individuals and professionals alike.  While there is potential for significant gains, the potential for significant losses is also a factor that must be considered.  Providing the investment is not considered prohibited by the IRS or involves disqualified individuals, it is possible for your IRA to invest in the oil and gas industry. As with all potential investments, we recommend performing due diligence and seeking the guidance of qualified experts.