In today's globalized economy, our lives are in many ways touched by the oil industry. Without this black gold life today would not be as we currently know it. Everything around us, one way or another has a direct or indirect connection with this massive energy complex. This industry encompasses not just the crude oil itself but also its by-product, natural gas. Because of the importance of the oil & gas industry in any developed or developing economies, it is hardly surprising that the financial markets pays close attention to the television screen when any natural major hurricane hits the coastlines of theUS.
Such was the case when hurricane Katrina bombarded the southern coast of the US. The oil market went into a trading frenzy. The oil market is not only affected by what is going on in the backyard of theUSbut is also susceptible to news happening thousands of miles away. News of pipeline bombings inNigeriaand political stability inIranare also able to rattle the cage: of the oil market. With so many uncontrollable and unforeseeable factors being able to affect the stability of the oil market, it is not surprising that many are questioning the wisdom of investing in this sector. Yet despite all the skepticism and the doubts mentioned above, many investors are still flocking to invest in this market sector.
In fact, the ways with which one can invest in the Oil & Gas industry is bewildering reflecting the penetrating influences which this industry can have on our economy. These investments are able to yield astounding returns for those who are brave enough to wade their feet into the Oil & Gas industry. Yet, this is not to say that rewards are never without risks. It is always in direct proportion to the level of risk which one is willing to undertake. The higher the risk that one is willing to shoulder, the higher also will be the level of reward. Investing in the Oil & Gas industries also work along the same risk/reward investment principle.
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