Investing in energy can be intimidating to both new and experienced investors. There are risks with any type of investment, but energy can be more volatile than other industries. Resources, political influences, fluctuating pricing, environmental concerns, and sustainability are all factors that play key roles in the gains and losses in investments. The process of fracking is a perfect example. Finding oil and gas deposits in this country has reduced dependency on foreign resources, boosted the economy in several ways, and made millions of Americans wealthy. Those who invested early are enjoying very high returns. Land owners where deposits are located have gotten rich selling mineral rights to large companies. Oil and gas companies are experiencing unprecedented profitability. There are still opportunities for investors to take advantage of increases in fracking. Some specific recommendations can be found on this great site.
Those interested in investing in the fracking projects being developed can purchase stock in the oil and gas companies. They can also invest in essential businesses that operate on the periphery. Companies that supply the piping, for example, are currently providing high returns. Trucking companies that are transporting the extracted products, and facilities that are refining them are also low risk investments that have the potential to pay high gains. It is also possible to actually own shares in an oil or gas well. Startup companies can now sell shares to two-thousand investors without becoming public companies. That has been the case since the JOBS Act was passed in 2012.
The risks are still high due to controversy, political and environmental debates, and possible long-term consequences resulting from the practice. In order to get to the shale oil and natural gas deposits, excessive amounts of water, chemicals, and sand are forced into rock formations to fracture them. Drilling goes deep into the earth, which can damage the water supply, release volatile toxins into the air, and effect the stability of the area. Air pollution, contaminated water, and an increase in earthquakes are the major issues facing the populations living around drilling projects. Those issues can also have far-reaching consequences as well. Some argue that air pollution is not an issue because these resources produce lower emissions when utilized than burning coal. The trade-off evens out the damage to the air quality. Proponents indicate that the risk to the water supply is low due to strong piping that carries the deposits to the surface.