Learn More About Shale Oil And The Benefits To Investing It Now

The more common type of oil that every investor hears about is crude oil, commonly referred to as tight oil. Though a lucrative investment for those who can afford it, more and more companies are changing their focus from crude oil to shale oil. It is easy to find out which companies are making the leap to this new source of energy, but it is important for an investor to know what they are buying before making a purchase. Here is a brief overview of what shale oil is, and why it is revolutionizing the oil industry all over the world.

Shale Oil Vs. Tight Oil

Tight oil is the type of product that people have seen spew from the ground when a vein is discovered. It is much easier to mine, and many oil companies can use pumps to remove it from the ground efficiently. Shale oil is entirely different, as it is found in sedimentary rocks that can be broken down to produce oil. It is more complicated to mine and requires additional processing, but it is an abundant resource that can is found on every continent.

Global Presence

The presence of shale oil all over the world means it is less likely to be susceptible to political climates and can be a source of revenue for countries all over the world. This stability leads to greater independence, and the ability to ensure oil resources are available for years to come. Investors are given the option to invest in companies that produce shale oil in their country, or turn to foreign markets and buy stock in international organizations who are cashing in on this lucrative form of energy.

Market Sensitivity

The large reserves of shale oil that exist make its market price stable when compared to other energy-based products. While it isn’t a prime source of oil currently, as future tight oil reserves are tapped dry, it will become the in-demand option for providing the world with the fuel it needs to run. This makes now the perfect time to buy, as stock prices are low, and relatively affordable.

To read additional information about the shale oil market, be sure to find our more detailed explaining on our blog. Investors all over the world are making the switch from tight to shale oils, and reaping the financial benefits from doing so.