Overview about our gas oil principal companies
Our gas oil principal companies have done in-depth study research on each project at several steps
• Front End Engineering Design (FEED) / Front End Loading (FEL)
• Detailed plant analysis of the performance and availability of the production plants
• Developing products pattern from plant data for new processes and licensed technologies
• Evaluation of surplus and shortfall in enhancing the revenues of existing assets
• Establishment of process options and constraints
• Commencement of screening studies
• Preparation of the data for a more accurate cost estimation
• Calculating cash flow for selected configurations
• Calculating ROI on a discounted cash flow basis
Final presentation of study report to management for financing approval By meticulously addressing these details incrementally and extending the analysis over the project's 20-year lifespan, accounting for capital depreciation, amortization, and potential inflationary effects, they can furnish comprehensive time value of money data. This data serves as a crucial benchmark for comparing the actual plant performance with a higher degree of accuracy, refining the assessment of estimated economic analysis data before drawing definitive conclusions regarding funding.
Furthermore, our gas oil principal companies actively engage in collaborative ventures with insurance companies to enhance their investment offerings, serving as a strategic tool for effective risk management for potential investors. Armed with exhaustive economic analysis and in-depth profitability studies, coupled with robust insurance protection, our gas oil principal companies are well-positioned to provide investors with an enticing proposition of attractive and secure returns on investment.
The keys to maximizing ROI from energy transition investments include a mix of factors that are, largely, internal. These include strict management of costs and timelines and access to cheaper capita, while external factors mentioned included the need for stable markets.
The primary aim of the energy transition is to establish a decarbonized energy economy. However, industry and company stakeholders emphasize that this transition must also be economically viable, yielding a favorable return on investment (ROI)
Stocks
Investors gain partial ownership in gas and oil companies by purchasing stocks, offering an indirect avenue to capitalize on the companies' operations, expansions, and financial growth. Optimal strategy involves acquiring stocks at lower prices and selling them when crude oil or natural gas prices are on an upswing, maximizing the potential for profit
Exchange traded funds (ETFs)
Exchange-Traded Funds (ETFs) are securities that track stocks in oil and gas companies, commodity prices, crude oil prices, or crude oil futures contracts.
Mutual funds
Mutual funds are investments involving pooled contributions from investors wishing to invest in a particular sector or set of securities. It is also an indirect investment in energy sector.
Equity Direct Participation Programs (EDPP)
The Equity Direct Participation Scheme presents an opportunity for investors to secure ownership in a gas and oil company through a joint venture structure. Investors can acquire shares through various options, gaining partial ownership as a reward for contributing financing to the gas and oil company. The success of shareholders is intricately tied to the profitability of the gas and oil company. Participation in Equity Direct Participation Programs extends benefits to investors, encompassing both tax advantages and a share in the venture's cash flow. Typically, securities within EDPP are not publicly traded, and the investment's value is primarily contingent on the performance of the underlying assets. For investors aspiring to leverage the advantages of EDPP, adherence to specific asset and income thresholds is requisite. These criteria may vary across different direct participation programs.
Private Placements
In a Private Placement scheme, gas and oil companies opt to sell bonds or stocks to a restricted pool of investors rather than making them available on the open stock market. Private placement securities can be directly acquired from the issuer, such as an insurance company, during the offer period.
Our Investment offer:
The risks associated with gas and oil investment
While the benefits of investing in gas oil sector are too good to be true, the investor must be aware of the associated risks involved in such an investment in order to make a wise investment and to enjoy the benefits.
Couple of the following risks, which needs to be carefully considered :
1. Volatility
Volatility measures of the change in oil prices. It is the range oil prices that can rise and fall within a specific period depending on the inextensible of both demand and supply to changes in the price in the short run. A volatile oil price can impact to destabilize production costs which affecting the output, especially for crude oil exploration from oil wells.
Liquidity measures the speed at which a gas oil bond can be converted into cash at the prevailing market price. Elevated liquidity risk introduces uncertainty regarding the growth of an investment asset, creating obstacles for potential investors who may be hesitant to make purchases due to concerns about potential long-term losses.
2. Liquidity
3. Emergency oil spills
Oil spills involve the inadvertent release of gas and oil into the environment, particularly the marine ecosystem, resulting in pollution. Such incidents can be triggered by accidents involving drilling equipment, refineries, tankers, pipelines, and storage facilities, posing a significant threat to sea animals and the overall environment. In the aftermath of an oil spill, oil companies are legally obligated to pay compensation to those directly impacted by the environmental damage. This compensation encompasses the expenses associated with cleaning the environment and mitigating harm to wildlife. The financial penalties incurred can substantially diminish the profitability of oil companies, presenting a noteworthy risk that cannot be disregarded.
4. Dividend Cuts
Dividend cuts can transpire at any point during a dividend-paying period when a company opts to reduce the dividend amount, curtail high dividend yields, or cease dividend payments altogether to investors. Such a decision reflects the financial strain experienced by a company, often prompting unfavorable reactions in the market.
5. Mechanical Risks
When operating heavy machinery on a site, the perpetual threat of fires and explosions persists. Fires may erupt from machinery at extraction and production sites, releasing flammable gases into the air that can ignite. This poses a substantial risk to the safety and integrity of the operation.
6. Reserve Risks
The economic analysis can be jeopardized by miscalculations in estimating reserves and the volume of hydrocarbons being produced. Errors in Return on Investment (ROI) calculations may result, introducing unexpected economic risks. Operation costs, product values, and market conditions are intricately tied to assumptions made during economic analysis, and any inaccuracies can lead to significant financial challenges.
Additionally, factors such as political risk, taxation regulations, political instability, and evolving environmental regulations introduce uncertainties that are challenging to estimate accurately over periods longer than five years. These elements become critical considerations within the realm of analytic projections.
Is gas oil investment secure to buy?
Despite the inherent volatility in crude oil prices, gas oil remains a compelling investment, particularly for the long term. It's noteworthy that the oil and gas sector has witnessed substantial economic growth over the past decade and shows promising signs of continued upward momentum in the future. Here are a couple of key factors supporting this outlook:
Stable Markets: Despite fluctuations in crude oil prices, the oil and gas markets exhibit relative stability. While the value of crude oil may vary, the overall market tends to withstand destabilizing forces more effectively than many other sectors. This stability makes investments in oil and gas potentially attractive as a safeguard against inflation and other external economic influences.
Long-Lasting Return on Investments: Making judicious choices in gas oil investments can lead to a consistent income stream with a higher return rate over the long term. Technological advancements have also contributed to improved risk management in the industry, enhancing the overall investment landscape. This, in turn, positions investors for enduring returns on their investments in the gas oil sector.