Are oil and gas stocks a good investment?

Oil and gas stocks can produce significant capital gains from share price appreciation and attractive dividend income during periods of high oil and gas prices. Some of the biggest companies in the world are oil and gas producers, including ExxonMobil ( XOM 0.08%) and Royal Dutch Shell ( SHEL -1.38% ).

How to become an oil and Gas Investor?

Stocks, mutual funds and ETF’s are the easiest and fastest ways to become an oil and gas investor. With these investment options, there are no minimums on the investment size. You can invest as much or as little amount of money as you please. Investing in oil and gas company stocks works like investing in any other publicly-traded company.

Why are oil and gas investors excited about high gas prices?

Because oil is a non-renewable resource, in time, the supply of oil will reduce, and the demand for products made from petroleum will increase. This means that in the future, the price of oil is expected to rise. So, when everyone else is upset about high gas prices, oil and gas investors are thrilled because it means their oil investment is up .

Are long-term investments in oil and gas profitable?

However, long-term investments in oil and gas companies can also be highly profitable. Investors should fully grasp the risks before making investments in the sector. The oil and gas sector is an attractive sector for both day traders and long term investors.