All information is provided for informational purposes only and considered “as is,” — not intended for trading purposes or advice — lexstarenergy.com or any representatives are not liable for any informational errors,incompleteness, or delays, or information contained herein. To obtain further information, you must complete our questionnaire and meet the suitability standards required by law. The interest may be sold only to accredited investors, which for natural persons, are investors who meet certain minimum annual income or net worth thresholds. The securities are being offered in reliance on an exemption from the registration requirements of the Securities Act and are not required to comply with specific disclosure requirements that apply to registration under the Securities Act. The Commission has not passed upon the merits of or given its approval to the interest, the terms of the offering, or the accuracy or completeness of any offering materials. The interest are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their interest. Investing in oil and gas involves risk, and investors should be able to bear the loss of their investment.
A report released earlier this month indicates that proven oil reserve additions witnessed record growth in 2011.
They rose to the highest level that they had been at in twenty-six years, beating the previous record, which was set just a year earlier in 2010.
This indicates that proven oil reserves are rapidly increasing. It means that those who opt to invest in oil and gas are likely to see impressive returns.
Natural gas additions also rose dramatically during 2011. They witnessed their second-largest yearly increase since 1977.
Why Are Oil Prices Rising?
According to E.I.A. administrator Adam Sieminski, the growth in oil reserves was driven by higher oil prices.
This is believed to be due to an increasing demand for oil.
High demand for this commodity in the U.S. has helped to strengthen its price.
What This Means for Potential Investors
The fact that oil is in demand means that now is a good time for oil and gas investments. Oil investments are liable to witness substantial returns, as production is predicted to increase well into the future and large quantities of oil are being consumed.
The demand is there and the supply is there; all that is needed now is for the oil to be extracted from the ground.
What Owning Oil and Gas Reserves Means for an Investor
Proven oil and gas reserves represent a relatively safe investment, as there is a reasonable certainty of oil or gas being recoverable in the current political and economic conditions.
No investment is safe and it is always advisable to find out as much information as possible before you commit to anything. However all the evidence currently points to the fact that investing in proven oil and gas reserves is likely to result in significant rewards.
The oil boom shows no sign of slowing down and supplies of natural gas have been demonstrated to have grown by up to seventy-eight billion cubic week in the week that ended 2nd August, indicating that they are likely to continue to increase for a considerable length of time.
Lexstar’s Role
Lexstar Energy can provide opportunities for investing in production from proven gas and oil reserves.
The company is taking advantage of the high demand rates and ample supplies of recoverable oil and gas that exist during the current boom.
Lexstar’s decision to invest in American energy production was motivated in part by a desire to increase the nation’s energy independence.
The U.S. is currently forced to depend upon imports from unstable countries for its energy needs. However there are clear indications that a change is on the horizon.
Disruptions in Iraq and Libya that would have previously caused a steep spike in global oil prices have failed to bring about as great an effect due to the North American oil boom, indicating that the power balance is shifting with regards to energy sources.
Direct investment in proven oil reserves is likely to result in significant returns and help the U.S. to become completely self-sufficient in relation to its energy needs. There are risks involved but all of the signs indicate that investment in this area is thoroughly worthwhile.
Image: Roy Luck
No Comments