Is Oil and Gas still a good investment--Considering Obama & McCain / Palin

By
Services for Real Estate Pros with Castle United, 1031x.com

Castle United includes an oil and gas investment information company.  We asked Dana Veitch, its president to give us his personal understanding of whether oil and gas is still a good investment in light of the upcoming election between Obama / Biden and McCain / Palin.  While this is Dana's personal outlook, we respect that it comes from a family that has been in oil for generations--boom AND bust.

Many of our clients are 1031 exchanging their real estate for oil and gas investments.  This is allowed, but please work with a good 1031 exchange company to make sure your exchange works!

Dana, you’ve been involved in the oil and gas industry since you were born. What do you think about the current situation and about the outlook for investing in oil and gas? Thanks,

When I think about all I seen and heard recently, I come to the conclusion that Mr. Obama does not seem to realize the importance of removing the “environmentalist” restrictions on exploring and developing oil and gas reserves on shore and off shore USA. Despite this, Congress just passed legislation that lifted the ban to drill on some offshore leases. Please remember, the new drilling and producing oil and gas reserves in the restricted areas will NOT wean us of importing foreign crude oil; however, it will HELP. It will take more oil production, more wind power, more solar and more natural gas to reduce our dependence on foreign oil significantly.

Mr. Obama's 10-year target date is NOT feasible, no way. However, in general, we should be much better off in 10 years--if we kick into high gear and focus on private industry development of these current and new alternative energies. Mr. Obama’s plan lends itself to more Government—energy industries are the perfect opportunity to expand Government as they run the charge toward alternative energies.

Mr. McCain understands the situation much better than Mr. Obama. Mr. McCain would engage V.P. Palin's experience with the oil companies in combination with his, to logically develop alternative energies across the board—mainly through private industry with tax incentives. This will create more jobs, thus more taxable revenue for the government. Less government, more taxable income, what a concept!

Oil & gas Investment?

The world is far from running out of oil and gas. We will have crude oil in our lives for several generations. However, what will be available will be harder to find and more costly to produce. As technology gets better with alternative energies, oil won't be the primary source of energy. The market will move forward with oil, but will be slowly replaced by alternative energy sources as the price of oil increases. With the demand continuing from China, India and third world countries, consider our business class "supply and demand" theory. With that in mind, the fact that the world currently burns 3 times more oil reserves than it "finds,” the long term price projections of oil are higher. I see the world entering a serious "Oil Crisis" with the price of oil higher than the current highs in the next few years.

If you have not invested in the oil business: where do you think the value of your current investment will be in 5 years? Where do you think an equal investment in oil and gas reserves be valued in 5 years? There is your answer.

Dana Veitch

Advent Oil and Gas Company
P.O. Box 1126
Morrison, Colorado 80465
303-829-7306 mobile
303-362-6727 fax

infox@1031energy.com

http://www.1031energy.com
http://www.adventoilandgas.com

Comments (2)

Jeff Rogers
retired - Manchester, TN

Nice post with a lot of information and links.  Thanks for that.

Sep 26, 2008 06:41 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Hi, Steven

   We invite you back to ActiveRain in the year 2017!

Mar 11, 2017 06:25 PM