For energy investors, the potential investments the energy sector provides is virtually limitless. However, in some cases, energy investments are quite unconventional. Sometimes, investments have to be unconventional in order for them to be successful. One such investment that may seem only mildly connected to the energy sector is having to do with land rights. For example, states that allow fracking for crude oil have literally handed over millions upon millions of dollars to average people that own property in states like Kansas, Texas, Oklahoma and North Dakota.
The question is how does this correlate to investors making money in the energy sector? The two may seem unrelated but, with the ingenuity of energy market investments, they aren’t. There are companies that make it their primary service to help landowners negotiate land rights agreements with energy companies in order to use their property for the harvesting of energy commodities. Whether it’s fracking or it’s placing an oil well on the edge of a person’s property in Texas, these land rights will have to be negotiated.
The problem is that the average property owner may be completely unprepared to effectively negotiate these land rights. This offers an opportunity for businesses to step in and work as an advocate for the landowner. These companies understand the nuances of dealing with energy companies and can typically strike a beneficial and lucrative land rights agreement that, in some cases, have paid landowners millions of dollars each year so that energy companies can harvest energy commodities from the individual’s property.
These types of companies, while technically still being an oil investment, although not directly related to owning oil commodities, make a perfect investment opportunity. This allows an investor to enjoy the returns that are commonplace in the energy sector without experiencing the risk that might be taken if an investor was taking up positions in an actual energy company.
There are many details and nuances involved in this type of investment opportunity and more than likely, an investor may have questions about things that are sourced at this article. However, by being inventive and looking for alternate investments, an investor can make handsome profits in many aspects of the energy market.