How Should Investors Look at Oil Outside the U.S.?
While there are immense opportunities in oil and gas investments in the U.S. these days, the domestic oil and gas industry still only accounts for less than 10% of the world's supply. For investors, though, investing in oil and gas on the international stage is much more challenging. Each country's regulatory framework and tax structure is wildly different, which can make it much more difficult to earn a decent return on a barrel of produced oil. For example, the Iraqi government takes 90% of all profit for a barrel of oil through taxes, fees, and royalties, so from an investor's standpoint you aren't as likely to generate a large return on oil investments there.
So how should investors play the overseas market? Tune into the video below where Fool.com contributors Tyler Crowe and Aimee Duffy look at a few regions to put on your radar.
The fate of the oil industry is based on the price of a barrel of oil, and the trends in pricing should play a large part in how you invest in the industry. To help investors better understand this dynamic, our top analysts prepared a special report that unravels the mystery of the oil prices and three companies that are well positioned to profit in the current market. You can discover the identities of these stocks by simply clicking here and we'll give you free access to this valuable report.
The article How Should Investors Look at Oil Outside the U.S.? originally appeared on Fool.com.Fool contributor Aimee Duffy has no position in any stocks mentioned. Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow them both on Twitter @TMFDuffy and @TylerCroweFool, respectively. The Motley Fool recommends Seadrill and Total SA. (ADR). The Motley Fool owns shares of Seadrill. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.