Friday, February 27, 2009

Why You Should Consider Investing In Natural Gas

By Terry Stanfield

If you are looking for a way to invest your money in these trying times, why not consider investing in the exploration of natural gas? The United States is abundant in natural gas as well as oil. An investment in natural gas exploration is not only something that can end up making you money, but can be beneficial for the environment as well.

Natural gas energy is clean energy and is plentiful in the US. Unlike other investments that you may make, however, you can get a tax write off for your natural gas exploration investment. The government is seeking ways to decrease our dependency on foreign oil and is offering tax advantages to those who make these types of investments. This is one investment where even if it does not pan out, you still end up winning when it comes to tax breaks.

If you think that you have to have a lot of money to invest in the exploration of natural gas, think again. You can invest in an exploration project from a domestic company that has a proven track record when it comes to drilling for this precious resource. By staying close to home and investing with a company that has been around for a while, you increase your chance for a return that is far greater than anything you will see in the very volatile stock market.

You can look at an investment in the exploration of natural gas in a number of different ways. Some investors like this type of endeavor because of the tax benefits. In other words, they invest to lose, giving them a significant write off on their taxes. Other investors are looking for a long term profit that is stretched over a number of years as the drilling pays off and gas is discovered. The return that you can get on a successful exploration project is far greater than anything you would get by investing in the stock market or real estate.

In some cases, you might see a profit right away. If the project proves to be dead on and natural gas is discovered, you can be looking at incredible profits from your investment.

When you invest in natural gas exploration, you are doing more than just making an investment that will net you money. You are enabling the country to develop its own natural resources. This is why the tax advantage exists. You are not only doing something that will benefit your own pocket, but will end up benefiting millions of other people at the same time.

Before you make an investment on the exploration of natural gas, study the company with whom you plan to invest. Make sure that they have a positive track record. Also be sure to understand the terms of your investment and how much of a stake you have in the project. Obviously, the more you put up towards the project, the more you stand to reap if the project is successful.

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