Benefits of Investing In Oil with EnerFlow LLC

by Edward Philpot.

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In 25 years, global energy consumption will increase by 50%. The roots of our dependence on oil go much deeper than our reliance on gasoline, fuel and heating oil. Petrochemicals, or substances derived from petroleum, are important in almost everything we eat, wear and use. Here are just a few items to consider: pesticides; fertilizers; detergents; food additives; tires; nail polish; lipstick; pillows; and even ink.

The United States is the third largest oil producer in the world. But we're the single largest consumer, producing 8% of the world's oil and consuming 25%. The United States consumes much more oil than we produce - a trend that is expected to continue well into the foreseeable future. As our demand continues to rise while our production simultaneously continues to decline, the ever-widening gap creates an inexhaustible rise in our dependence on foreign oil imports. And the United States' crucial dependency on foreign oil imports makes us very vulnerable. Unfortunately, there are but two viable means of reducing our dependency on foreign imports. The first is to reduce our oil consumption. So far, this one shows very little promise. The second is to increase domestic production. This one does have potential.

To meet demand, the U.S. will have to more efficiently harness the power of sun, wind and atoms. In any event, the smaller independent oil companies must continue to explore for and produce the millions of barrels of oil left behind by the major oil companies which are focusing on offshore drilling around the world. The more aggressive small independent oil companies are focused on minimizing risk for their Investors by developing oil reserves in areas where known oil saturated blanket sand formations exist.

To accomplish this strategy, Enerflow LLC based in Dallas, Texas, has learned how to develop oil reserves in areas where known oil saturated blanket sand formations exist as well as reducing risk to the Company's Investors.

The Economics of Energy in the 21st Century

Today, we are more than just dependent on oil, we are addicted to it. Despite numerous attempts to render oil less important, no suitable energy substitute is anywhere close to being found. Oil is the lifeblood of modern civilization and has almost single-handedly made industrial civilization possible. In 25 years, global energy consumption will increase by 50%. The roots of our dependence on oil go much deeper than our reliance on gasoline, fuel and heating oil. Petrochemicals, or substances derived from petroleum, are important in almost everything we eat, wear and use. Here are just a few items to consider: pesticides; fertilizers; detergents; food additives; tires; nail polish; lipstick; pillows; and even ink.

The United States is the third largest oil producer in the world. But we're the single largest consumer, producing 8% of the world's oil and consuming 25%. The United States consumes much more oil than we produce - a trend that is expected to continue well into the foreseeable future. As our demand continues to rise while our production simultaneously continues to decline, the ever-widening gap creates an inexhaustible rise in our dependence on foreign oil imports. And the United States' crucial dependency on foreign oil imports makes us very vulnerable. Unfortunately, there are but two viable means of reducing our dependency on foreign imports. The first is to reduce our oil consumption. So far, this one shows very little promise. The second is to increase domestic production. This one does have potential.

To meet demand, the U.S. will have to more efficiently harness the power of sun, wind and atoms. In any event, the smaller independent oil companies must continue to explore for and produce the millions of barrels of oil left behind by the major oil companies which are focusing on offshore drilling around the world. The more aggressive small independent oil companies are focused on minimizing risk for their Investors by developing oil reserves in areas where known oil saturated blanket sand formations exist.

Minimizing Risk in Profitable Ventures

To accomplish this strategy, Enerflow LLC based in Dallas, Texas, has learned how to develop oil reserves in areas where known oil saturated blanket sand formations exist as well as reducing risk to the Company's Investors. The Company currently drills 2 well programs into oil saturated blanket sand formations with up to 13 potential horizons and/or lenses per well giving the Company's Investors a total of 26 potential horizons and/or lenses from which to produce oil.

While Investors are helping the country meet it's demand for energy, they are also diversifying their investment portfolios which can increase an Investor's overall return on investment of an Investor's portfolio.

With the global demand for oil continuing to grow, one must consider investing in oil and gas with a self directed IRA. It could be an ideal way to grow and produce yields for one's retirement with an oil and gas portfolio. It's no wonder global demand for oil continues to rise, year after year. And amidst this incessant thirst for more, the leading producers around the world are watching their production levels steadily decline. As this occurs, the basic economic forces of supply and demand take charge. This fundamental economic principal has been the principal influence over prices throughout history and remains the driving force behind rising oil prices of late.

Tax Incentives

In an effort to stimulate domestic Natural Gas and oil production financed by private sources, Congress provided tax incentives in the 1990 Tax Act that significantly enhance the economics of investing in oil and gas. But these incentives are not "loop holes." They were placed in the Tax Code by Congress to make participation in oil and gas ventures one of the best tax-advantaged investments available. Of course, the primary reason to invest in oil and gas drilling ventures isn't for the tax benefits. It's for the profit potential.

Profitable Ventures with One's Self Directed IRA

The ability to extract oil and gas from the ground at a fraction of today's market prices can make drilling ventures very profitable. And that can have a substantial impact on a portfolio's overall performance - especially self directed IRAs.

Many investors are surprised to discover they can invest in oil and gas drilling projects through their IRAs. Most financial institutions make it easy through self directed IRA investing. A number of oil and gas Investors have begun to allocate a portion of their IRAs toward drilling projects with notable results.

After all, in today's environment of unstable debt and equity markets, and failed financial institutions, generating solid portfolio returns can be extremely challenging. It seems like bad news looms around every corner. But drilling profits are not affected by interest rates or stock prices. The kind of bad news that tends to drive stock prices down tends to drive oil and gas prices higher. It can be an ideal hedge against inflation and tragedy, as well as a primary source of income and profits. And the revenue from a quality oil and gas well portfolio can pay for many, many years. This can make it an ideal investment for IRAs, or because of the solid tax incentives, an excellent investment for one's investment portfolio.

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