In the unusual first months of the Covid-19 pandemic, oil prices fell due to a slowdown in transportation and shorting from Oil Futures traders. This allowed oil drilling operators to source and lease oil field lands at an all-time low price.
In our current state of inflation, making an investment into real assets such as oil allows participants to hedge the dollar’s value as it will correlate with the underlying asset. We saw a perfect opportunity to offer our investors the chance to not only participate in a high-yielding project but to hedge inflation and take advantage of significant tax benefits.
What this meant for investors:
- As the dollar devalues the price of goods increases
- Having a commodity such as oil allows you to insulate yourself from devaluing currency
- Low land lease cost means more profit
- Allows us to stay profitable even at lower crude oil prices