The oil and gas industry has long been regarded as a lucrative business for investors, attracting billions of dollars in funding every year. Although it comes with high levels of risk, the reward for smart and patient investors is unmatched. 

Thanks to new technological advancements, drilling projects are expanding all over the world, both onshore and offshore. These developments raise the question of where fossil fuel investors should put their money to see the largest returns. 

Investing In Onshore Drilling Projects 

Onshore drilling investments have recently become more desirable following the creation of new tools and techniques, making it easier to access resources all over the world. 

Drilling onshore is the most traditional method of extracting oil and can also be considered the safest bet for a fossil fuel investment. There is a much higher risk for oil spills in the ocean than on land. This is not to say that accidents do not happen within onshore drilling sites, but investors can sleep better at night knowing that their money is as safe as possible. 

When it comes to onshore drilling, setting up the rig and extracting the oil accounts for less than half of overall costs. Investor funds contribute mostly to the processing stage, where the resources are refined and stored for distribution. 

Onshore projects are completed long before the average offshore project. Through the use of readily available tools and steady processes, revenue is typically generated around the one year mark. 

Overall, onshore oil investors can benefit from timely returns and predictable results. 

Investing In Offshore Drilling Projects 

Since offshore drilling projects take place in the ocean, they require more equipment and resources than the alternative, which contributes to cost significantly. The majority of project funding will go toward the task of drilling the oil. However, offshore rigs can extract more resources per day than what is typically collected onshore.  

Offshore oil projects tend to last very long because of the time it takes to build the rig. The timeline for preparation of the drilling site can take years, and the project itself will most likely move at the same pace.  

With all that being said, offshore oil investments are most ideal for those who are seeking a long-term hold. Being that these types of projects take place over an extended period, investors should be prepared for contracts lasting several years. 

Why Offshore Investments Should Not Be Overlooked

Investments in offshore drilling projects are often overlooked by those who are looking for an immediate return. However, this does not mean that the reward will never come. 

While the holding time does not necessarily indicate how large the return will be, there has been speculation that investors can benefit from getting in on the offshore market sooner than later. 

Despite a decrease in offshore stocks following news of developments in shale gas extraction on land, fossil fuel investors are urged to take another look. Those who are not intimidated by a dip in the market could potentially benefit from pouring money into stocks while they are low and cashing in when they go back up. 

Offshore or Onshore: Which One Is Better? 

When it comes to making any kind of investment, there is no single path of success for everyone. Establishing your technique will take time, effort, and most likely a lot of trial and error. 

Those who are looking to get involved in the oil drilling market can, however, find confidence in the fact that there is always a demand for energy resources. Whether you decide to put your faith in an onshore or offshore project, the fossil fuel industry has always been a lucrative business for patient and dedicated investors.