Scott Tominaga: Investing in Our Natural Resources

Scott Tominaga: Are Natural Resources Viable Investments?

Oil and gas remain very much in demand, perhaps even more so than ever, despite the presence of alternatives being discovered or developed left and right. According to Scott Tominaga, not only are petroleum, natural gas, and other similar products popular sources of heat or energy, but they can also be used in the creation of asphalt, lubricants, wax, plastics, and more. It's this abundance of opportunities that makes investing in the sector a sound decision. For you investors out there, this is just one of the advantages of putting your money in oil and gas.

Then, there's also the diversification of your portfolio.

Throughout the huge expanse of more modern human history, oil and gas have been a tremendously effective diversifier for any investment portfolio. Proof of this is that a slow economy, which causes most stocks and funds to stagger, usually entails higher oil and gas prices, consequently triggering a rise in stocks in this sector. Such investments can then help insulate a portfolio from fluctuations in the market.

Scott Tominaga explains that the potential profit margin of both oil and gas is a lot higher than that of a majority of investment vehicles. It is true, especially when the funding is infused into smaller companies. Striking big on a single well can pay huge dividends in the short- and long-run. Just imagine what discovering multiple wells can do for you.

Furthermore, you'll have robust tax benefits that can be had when investing in oil and gas, thanks to federal tax codes. Examples of these tax incentives are deductions for drilling costs, lease cost deductions, depletion allowance, 1031 exchanges, and many more, adds Scott Tominaga.

Scott Tominaga is a professional in the hedge fund and financial services industry. He has been responsible for all aspects of back-office operations on a daily basis, including investor relations and marketing. More articles like this on this page.