[00:00:01] Speaker A: You're listening to PTC point of view brought to you by preferred trust company, the preferred custodian for all alternative investments. We're here to provide retirement savers like you with the tools you need to succeed. Need a confidence boost when it comes to investing outside of the stock market? Do you want the power to build a tax sheltered Nasdaq that will last through your golden years? You've come to the right place. Turn up your speakers and turn off cruise control because we're taking you on the alternate route to investing with your IRA.
[00:00:39] Speaker B: We have Derek long with us today who is a wealth manager at Eckard Enterprises. So thank you so much for joining us today. We really appreciate it.
[00:00:48] Speaker C: Yes, thank you so much. I love you guys. Thank you.
[00:00:51] Speaker B: All right, we're going to get started. We're going to play a little fire round here. I have a series of questions in front of me, actually, seven, to be exact, because, you know, preferred trust, our home base is Las Vegas. Lucky number seven.
[00:01:04] Speaker C: Love it.
[00:01:05] Speaker B: We're going to start with number one, if you're ready.
[00:01:07] Speaker C: Love it. Bring it on.
[00:01:09] Speaker B: All right. What are the different ways individuals can invest in oil and gas industry, and what are the key differences between those options, like working interest, pipeline mineral rights? Give us a quick, short answer.
[00:01:29] Speaker C: Sure. So you already know the three most common ways is actually going to be working interest, which is investing in the drilling side. This is the riskiest way to invest in oil and gas, but also the most profitable, the less risky side to invest in oil and gas is actually mineral rights. It is very passive. You get a monthly check. So it's really nice and it's super easy. And it's just pretty much similar to real estate. The pipeline side is right in the middle. Think of it like putting money into a fund. When you invest into a fund, right, you kind of get a little bit of best of both worlds. So it's not that one's really better than the other, it's what is your risk tolerance? Right.
[00:02:07] Speaker B: Perfectly said. Number two, what are some of the main risks investors should be aware of and how can they mitigate them? Awesome.
[00:02:19] Speaker C: So the biggest thing to be on the lookout is make sure you have real ownership in oil and gas. No matter who it is you're looking to invest in. They should be able to give you things like either a serial number to the well, a deed if it's a mineral. Right, or give you something that shows that you have legitimate ownership. Surprisingly, a lot of companies out there don't do this. So since they don't give you that type of documentation. Really, what you're doing is investing in the syndicator, not investing in oil and gas. So that's the best way to mitigate your risk, is know what you're invested in. Make sure you ask for those serial numbers and or those deeds to show that you have ownership.
[00:02:56] Speaker B: Perfect. Thank you. Number three, conducting proper due diligence. What are the essential steps investors should take to thoroughly research and evaluate potential investments in oil and gas?
[00:03:12] Speaker C: Honestly, the best thing to do is ask to see if you can't talk to other partners or investors. I think that's one of the greatest options. Because if I'm willing to introduce you to my other investors, not only that, but ask for my rate of return sheet. Right. If I can give you something that shows, hey, I make a monthly payment, or you can receive, and expect to receive this based off a five year track record. That is some of the best things you can do. And that holds true not just for oil and gas, but honestly, any investments you're looking at, from notes to multifamily to storage units, those are what you should be looking for anytime you're looking at doing due diligence.
[00:03:49] Speaker B: Well said. Number four, beyond the initial investment, what ongoing costs should investors anticipate when investing in oil and gas? And how can they factor these into their decision making process?
[00:04:06] Speaker C: So, if you're actually owning any type of mineral rights, one of the best advantages is there's never a capital call. You don't have to worry about things like insurance, property taxes, nothing like that. So there is no additional factors in mineral rights in working interest. If you invest, let's say, $50,000, you want to have an additional 50,000 on the side, because there's about a 50 50 chance that there's going to be a capital call. Right. So this is very common on the working interest side. And why a lot of people lose their money is they put all the rakes into it. So, mineral rights, no capital call, working interest. Absolutely. Keep the same amount of money that ever it is you invested.
[00:04:47] Speaker B: All right, good forewarning on that one. Thank you. Number five, how might changes at the governmental level, such as new regulations or policies, impact investments in the oil and gas sector?
[00:05:04] Speaker C: So no matter what, no matter whether it's a republican or a democratic person in power, oil and gas is actually not affected the same way people think it is when democratic individuals are in power. Usually we see oil prices go up. Right. This is good if I'm an oil investor. Why? Because I can make more money per barrel of oil. But when a Republicans in power, we usually see oil prices go down. Well, guess what this means. They're pumping out more oil because it's cheaper for the oil companies at that point in time. Yeah, I'm actually doubling and tripling my revenue. So to be honest, it doesn't matter when we look at these situations. And so overall, that's one of the reasons oil and gas seems to be on a consistent uptick for any investors. If you do it right and do the due diligence.
[00:05:50] Speaker B: Perfect. Number six, what are some common myths or misconceptions about investing in oil and gas? And how can investors separate fact from fiction when making an investment decision?
[00:06:06] Speaker C: I think the biggest myth comes down to the oil and gas. They think of it only as being your gasoline that we use or oil you might put in your car. But we actually use oil for just about everything that creates, that we use for plastic and batteries. And I think that's something that a lot of times people don't realize so well. What happens if we go straight to solar power? That's fine. We still need oil to do things like create our plastics that we use on a daily basis.
[00:06:34] Speaker B: It's funny how the oil is needed to create the batteries that we put in these vehicles, isn't it?
It's very interesting. Very interesting.
[00:06:45] Speaker C: Absolutely is.
[00:06:47] Speaker B: Finally, number seven. Lucky number seven. Looking ahead, what do experts predict for the future of the oil and gas industry? And how can investors position themselves to navigate these potential challenges or opportunities in the years to come? Crystal ball. Let's hear it, Derek.
[00:07:10] Speaker C: As it's beginning, and early in 2024, everyone, no matter what political side you're on, is predicting that oil will be at $100 a barrel next year. Right now, as of February 2024, we are sitting at $70 a barrel. This means we can expect a 30% increase just from that alone. So right now, I don't care where it is you're looking. That is a great chance to get in on oil and gas before we see the up spike. And that doesn't matter which political party you're a part of, they both say the same thing.
[00:07:44] Speaker B: Sounds like we've got a Runway ahead of us.
[00:07:47] Speaker C: Absolutely.
[00:07:47] Speaker B: Ready for takeoff, right? Ready for takeoff. That's what we want to hear. For those of us that are interested in investing in oil and gas, how do we get a hold of Eckard Enterprises?
[00:07:57] Speaker C: The best thing is just go to eckeredenterprises.com. Believe it or not, we have preferred trust on there. We have an interview with you right on our app. So if you're coming from preferred trust, make sure you make us aware of that. We will even cover things like your application fees and your transaction fees if you choose to set up a self directed ira. So just check out eckardenterprises.com.
[00:08:21] Speaker B: Derek, we thank you so much. We appreciate you playing the fire round with us, and we will talk to you soon.
[00:08:27] Speaker C: Sounds good.
[00:08:28] Speaker B: Thanks, Carrie. Thanks. Bye bye.
[00:08:31] Speaker A: Thanks for joining us for another episode of PTC Point of View, where retirement savers meet alternative investments. Know someone who's struggling with their retirement strategy? Tell them about our show. Can't wait for the next episode. To learn more, visit our
[email protected], or give us a call at 888-990-7892 close.
