Investing in oil and gas may conjure images of standing under the heat of a Texas sun, watching cranes extract oil from the earth. Hoping that the reservoir and the money they're making never run dry. While that is one way to invest in oil and gas, there are certainly other ways to become an oil and gas investor that you may not even know exist.
Regardless of how you invest in oil and gas, it can have tremendous financial about 80-150 percent on profit
Traders Finance Hub Supply and Trading (S&T) provides a critical link between the market and upstream, downstream, and chemicals companies. We provide commercial support to our crude oil and natural gas production operations and to our refining and marketing network. S&T is headquartered in Houston, Texas, and has offices worldwide including trading hubs in Houston, London, Singapore, and San Ramon, California. Our trading professionals manage commodity transactions averaging 5 million barrels of liquids and 5 billion cubic feet of natural gas each day. Our activities are organized by crude oil, natural gas, and refined products.
Crude Supply and Trading (CSAT) buys, sells, and transports all major grades of crude oil. CSAT secures the best prices for selling Chevron's upstream production and for purchasing crudes used by our refineries. CSAT works closely with Traders Finance Hub shipping Company, our pipe Line company, and third parties to transport crudes for customers around the world including Americas Products and International Products organizations.
Product Supply and Trading manages global supply, trading, and logistics for a wide range of products, including feedstocks, fuels, and refined products like gasoline, naphtha, diesel, jet fuel, heavy fuels, biofuels, coke, sulfur, ammonia and asphalt, and other products for the manufacturing and marketing network.
In 2019, we chartered nearly 3,000 vessels to transport 140 million metric tons of crude oil and refined products. We maintain a permanent fleet of nearly 60 time-chartered vessels. We apply one of the most rigorous selection standards in the oil industry for every ship we use, especially those in our fleet. To make sure each vessel meets our standards, our vetting process notably evaluates the condition of the equipment, ship maintenance, crew quality, and operating procedures on board.
In 2019, we sold more than 34 million metric tons of LNG. We transported this gas onboard ultra-high-performance LNG carriers capable of maintaining an extreme cold chain (-163C) between the liquefaction site and the regasification plant.
Why invest in oil and gas?
It is important to note that most goods in our economy have substitutes. For example, if apple crops fail one year and the price of apple juice goes up, people can instead purchase orange juice, soda, or milk.
This is not the case for oil, because there is no alternative to many of the products produced from petroleum. Despite the surge in biofuels and renewable energy sources, the majority of the transportation infrastructure in the U.S. remains to be mostly dependent on oil.
Oil and gas are commodities, which means there is a limited supply and high demand.
Because oil is a non-renewable resource, in time, the supply of oil will reduce, and the demand for products made from petroleum will increase.
This means that in the future, the price of oil is expected to rise.
So, when everyone else is upset about high gas prices, oil and gas investors are thrilled because it means their oil investment is up.
investing in oil and gas provides diversification of your portfolio, and can be seen as a hedge against inflation.