Investors
Gulf Coast Midwest Energy Partners brings investors together with the best independent oil and gas operators in the Mid Continent, Texas and Louisiana Gulf Coasts. Any potential investor should consider the following questions:
Why does investing in oil and gas make sense?
Why is a Gulf Coast Midwest Energy partnership the best way to invest?
Investing In Oil and Gas
Diversification
Most investors diversify their investments across a range of asset classes and industries; equities, bonds, real estate, etc. The aim of asset allocation is to balance the characteristics of different asset classes to keep your portfolio:
- In line with your financial goals;
- Help ensure that if the value of your investments drops in one asset category, it may gain in another.
Energy represents roughly 8% of the US total GDP. Oil and gas is a major component of this sector and also serves as a major feedstock into chemicals, plastics and other manufacturing industries that produce many of the products we consume everyday.
Investing in oil and gas offers an excellent opportunity to protect your portfolio against energy-related inflation and raw materials risk that cannot otherwise be diversified away.
Oil and Gas Versus the Rest of the Energy Sector
Potentially Very High Returns - Many oil and gas wells return 50% of their ultimate recoverable reserves during the first five years of their life; the primary recovery period. The best wells can achieve returns of 6 to 1 and much higher. No other energy sector investment's return potential can approach the magnitude of oil and gas drilling.
Global Market - Oil and gas are global commodities. As the Chinese, Indian and other rapidly expanding economies rise, demand for oil and gas will continue to rise. Other energy markets such as electricity are much more regional in nature and far more dependent on the status of the U.S. economy and supply demand balances within individual geographic regions.
Tax Advantages - There are numerous tax advantages associated with investing in oil and gas wells that are not available to investors in other parts of the energy sector.
The Future of Oil and Gas
Oil and gas exploration will continue to play a major role in our economic and energy futures despite many of the headlines to the contrary:
- Oil is THE Feedstock for Internal Combustion Engines.
- Alternative or "Green" Fuels Will NOT Replace Fossil Fuels Soon.
- Energy Efficiency Gains and Conservation DO NOT Reduce Overall Consumption.
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We're NOT Running Out of Oil and Gas.
The need for expanding supplies of oil and gas will continue for decades to come. Gulf Coast Midwest Energy, its investors and operating partners participate in an industrial sector that will be vital to our domestic and world economic growth and devolpment.
Investing With Gulf Coast Midwest Energy Partners
Investment Methodology
Gulf Coast's investment methodology is designed to preserve investors' capital and offer above average returns by utilizing the following techniques:
Low risk project classes - We are not wildcatters. We focus on hitting singles and doubles, concentrating on known resource plays and developmental wells.
Diversified Operations - Gulf Coast partnerships typically invest capital across 7 to 10 successful operators while limiting total exposure to any one operator.
Eliminate Concentration Risk - Gulf Coast partnerships keep dry-hole risk of loss on any single well to a maximum of 3% of total capital invested. Investors of $1 million or more can expect that they will risk well under $25,000 per well dry-hole cost.
Skin in the Game
Gulf Coast and its operating partners typically encompass a material portion of the invested capital per well; often more than 50% of total capital invested. We stand shoulder-to-shoulder with our investing partners.
Proven Operators
Gulf Coast operators have a proven record of successful oil and gas exploration. They run cost effective operations and on site project management.
Interested in learning more about oil and gas opportunities at Gulf Coast Midwest? to have our team show you more about our programs and operating partners.
Low Cost Transparent Operations
Gulf Coast Midwest Energy is unique in its ability to utilize technology to streamline its operations. Investors benefit greatly from our low monthly operating overhead.
Gulf Coast investors are our partners. The industry leading, private area of our web site is dedicated to provide all of the information necessary for our investors to manage their investments in our funds. Our investors can find:
- Summarized financial and operations information.
- In depth operations documents and information.
- Industry leading education center.
