The Pros and Cons of Investing in Gas and Oil

Investing in oil and gas are effective ways to grow wealth. The demand for these commodities never goes away, as countries still rely on them to run transportation, businesses, manufacturing, and many other industries. Oil and gas power cars, electronics, appliances, and other things people need, but not every investment has a positive effect. Here, potential investors can get some investment advice on the pros and cons of playing the oil and gas markets.

Advantages of Investing in Gas and Oil

Profit margins typically increase when a deep-well exploration hits a substantial oil reserve. It’s well-known that an investment’s return can be five or ten times greater than the preliminary capital. Wells can certainly pay off, and the richest ones can last for quite a few years. However, when stocks fall, it pays to have a diverse portfolio that includes investments outside of oil.

Oil and gas investors also get certain tax advantages, particularly if they make a play in a limited partnership, with about 15% of the investor’s share being eligible as a tax shelter. When a stock goes down due to resource depletion, a private investor can keep his or her cash flow under control. Investors can also reap the benefits of intangible drilling costs where they write off a portion of the first year’s income to cover incidental expenses.

Drawbacks of Oil and Gas Investment

Despite the fast, big returns and various tax advantages, investing in gas and oil can be risky. For one thing, market prices are in a constant state of flux. An investment’s profitability is dependent on nearby and international factors that are beyond an investor’s control. Losses can vary but, in some cases, they can be total.

Investing in a private company or limited partnership provides bigger gains, but it also means paying commissions that are higher than a stockbroker’s fees. Additionally, investing in a smaller company means that shares are less liquid than in public, larger companies. An investor’s income is subject to maintenance and operating fees as well. Scams are quite common, with many concealing an exploration’s real condition, interests, or existence.

Before an investor parts with his or her money, they should know about the company and the offer’s terms and conditions. Furthermore, investors should carefully weigh the benefits and risks of such a venture. While speculation is risky, it can yield a higher ROI.

When Accidents Occur While Delivering Orders on a Motorcycle or Scooter

Controlling expenses is the only way to maintain a profit in business and this is why many companies that offer delivery allow their drivers to use scooters and motorcycles. These small, efficient vehicles also make the process faster thanks to their ability to maneuver around obstacles in a manner that is impossible for larger automobiles. The problem is not their cost or their convenience. Instead, it is the business owner attempting to save money and time, and losing out on both when an accident occurs.

Motorcyclists are not statistically more likely to have an accident but they are more at risk of injury or death when an accident takes place. The danger is much higher because of the lack of protection people have when they are out in the open as they are on a scooter or motorcycle. Even a minor accident that results in no damage to a car or truck could be devastating to one of these drivers.

So, who is responsible for the damages when an employee is delivering orders on motorcycle or scooter and is involved in an accident? This is the question that most concerns business owners because it affects their bottom line. Responsibility will depend on several factors if the driver was the one charged with causing the accident.

  • Is the driver considered an employee or an independent contractor that is paid only for the miles traveled?
  • Was the driver actually working at the time of the accident or was the item already delivered and they were not technically on the clock?
  • Is the transportation used during the accident owned by the employee or the business?
  • Was the driver speeding because of unrealistic delivery time demands from their employer?

The problem is a common one and can become costly for all involved. Personal auto insurance will not usually cover accidents that happen while using a vehicle for work. Many business owners include their drivers on their insurance policies but some may choose not to or not have had the opportunity if the employee is newly hired. The employee may also not be covered by their employer if they were acting irresponsibly or driving while impaired. It is often necessary in these cases to seek legal representation due to the high risk of potential lawsuits, lost wages, and property damage. A professionally created employee contract may also help to clarify who will accept responsibility in these situations.