Oil and gas involves high risks involved but very lucrative. The higher the risk, the higher the profit. Real estate involves little to nil risks and it takes a long time to make profit from it
Good to know, since I have never invested in oil or gas, and I don't know someone who has, nor have I checked the statistics on this to attest. But the Real Estate business is number one in my country and apart from having no or very minimal risk. I vote for the real estate world.
In my country there’s high tax rate imposed on oil and gas investors compared to real estate investors. Real estates investors can easily evade tax in my country cause they’re taxed on profits while oil and gas are taxed on income. This is the more reason why very few people makes it big from oil and gas
Crude oil business is not easy to handle. A very large amount of capital is required to start it. On the other hand real estate business can be managed easily as compared to Crude oil. Thus I prefer real estate.
Real estate is the easiest to handle. It doesn’t necessarily need your 24hours or weekly attention. Moreover the cost of starting a real estate business is lower than that of oil and gas. I prefer real estate too
Yes this is what most of people do. You just need to invest and only a small attention is required in this work. So to all the persons in the present Era this is the best option. Every one can earn a good capital without much risk.
The oil and gas industry is a very lucrative business even more so than real estate, but it require huge sum of money to venture into and also connections. With just a good amount of money and knowledge you can go into real estate.
I think that it is hard to make a comparison between the two. But when it comes to investment I would say that oil and gas is probably the more profitable and lucrative way to go. The reason that I am saying this is that if you look at oil and gas it is used as a primary source for cars and for electricity production worldwide, and therefore it is a very sought after product. The demand is high and this will in turn increase the price considerably.
Truly oil and gas is one of the most sought after commodity around the world cause it’s required for use in our day to day activities. However, there’re lots of challenges and risks involved in oil and gas. For example, oil and gas investors are heavily taxed on income. Real estate investors are taxed on profit. If attention isn’t paid to this, one can run out of the market
This is very interesting. To be honest I was not completely aware of this. And in this case then I guess that if you are not invested in large quantities into oil and gas then your profits would be reduced drastically. It is a very important factor to consider before deciding which of the two routes should be pursued. Another thing though when choosing is that oil and gas has a global market whereas real estate may just be limited to the market within your region.
Yeah real estate is limited to a region and location. It’s an immobile investment. Oil and gas is a mobile investment and its profit range can be maximized. The tax involved is one of the biggest reasons why most oil and gas investment foldup
From the research that I have done after speaking with you on oil a gas tax, it seems that oil companies can pay as much as 35% in taxes for their companies when they sell oil. This is quite a considerable portion and is likely to decrease their profits considerable especially if you consider that with time the difficulty to get the oil is increasing as there are less and less of these reserves that are in place.
Yes the taxes oil and gas investors pays is overwhelming which is why almost 200 oil and gas companies folded up in 2020. The pandemic affected them yet the government taxed them. 35% income tax is way too much for any business. How sure are we that the company even made 20% profit annual profit? Though most times oil and gas companies makes higher than 60% ROI but still the tax is way too much
Yes most times they are going to make a substantial profit that will be maybe even 60% or maybe more than that. Whoever this is discouraging new oil and gas investors and companies to get into this market because in the beginning they are not going to make as much profit as these bigger companies and therefore they will not be able to keep up with the tax rates. This will not only affect them in terms of their profit but will also cause them to not be able to grow their business in the way that they would have liked. Especially since the technology to get involved in this business is quite expensive and therefore will take a long time to pay off these capital investments.
