Building a safe portfolio requires a sensible strategy built on insight and understanding of the oil and gas industry. Like any wealth building strategy, diversification is the make or break tactic that provides a hedge against failure. That means having a portfolio that contains both oil and gas.
When the performance of one commodity is down, the other is usually coming on strong. Both are energy commodities and all commodities perform in cycles. The global appetite for energy is growing but, market forces regionally, nationally, and globally impact the revenue flow and the timing of oil and gas projects. Owning both keeps cash flows stable amd build a safe wealth portfolio.
Diversity also applies to location. Owning projects in fields that rely on different transportation lines is another sound strategy. A line can be out of service for any number of reasons and that can interrupt production for weeks and months.
A preferred addition to a sound portfolio is a project selling Brent rather than WTI or cheaper oil. Wells where the majority of ownership stays with the operator and the deals payout in 18 - 36 months are a good bet. As the saying goes, trust but verify. Do the homework and verify all claims. Your wealth portfolio will be safe and will thank you.
Keeping your eggs in diverse baskets is a time-tested strategy that works in nearly all situations but one...when you find the best people to work with, you don't hop around. KRANDEE finds the best and sticks with them.
Working with the industry's best means consistent revenue even in the lean times. The indicators show the lean times are past and the boom time has started. The energy sector is going to be the best place to be for the foreseeable future!
This is the best time to be an insider in today's oil and gas boom and The Krandee Group knows the oil business inside and out. If you are not reading the Krandee Insider, you are missing the insights that can mean the difference between success and failure in the oil and gas business.
It's not what you know, but, who you know and the Krandee Group is the one to know for inside insights.
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