Accredited Investors in Oil and Gas and Corollary Risks

Fuel and energy sources are high if you're wise enough to get in demand, making an oil or gas investment an option. The advantages are fairly well known, such as tax shelters and incentives for drilling in the USA, almost two hundred years as a robust and stable commodity, increasingly substantial demand that has to be met with greater supply and continuing production that generates a liquid cash flow.

Before you create oil and gas security investments, however, it's necessary to understand that because of company tastes in addition to some laws in place; only investors are permitted to participate.

Accredited Investors in Oil and Gas and Corollary Risks

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An accredited investor is an individual who is considered to be fully functional and is not bound to all of the restrictions of the SEC. An individual investor qualifies by meeting one of three criteria:

1. Your annual income is greater than $200,000 your income is more than $300,000, the year and last year and you hope to maintain the same level continuing; or

2. You have a net worth which is more than one million dollars, either as an individual or together with your spouse or spouse; or

3. You're an officer, general partner, or a manager of the security that's offered for the issuer.

Most companies recommend so as shielding themselves from the danger that one becomes an investor. There are a number of exceptions which are created if someone demonstrates that she or he has the knowledge and the experience of the business, and knows exactly what the dangers are when making the choice.