The world currently consumes over 30 billion barrels of oil per year and it is the largest industry in the world. The supply of oil is finite and the demands on the supply have risen dramatically over the last several years, as emerging countries like China and India have increased their manufacturing capacity and infrastructure spending.

The economics of investing in a successful oil and gas well can be very rewarding for investors. Many wells have long production histories and many return their initial investment in a relatively short period of time.

Emerging oil and gas companies have been successful by exploiting inefficiencies in the system. Smaller opportunities overlooked by the majors, advanced exploration and drilling methods and by-passed pay opportunities all work in emerging companies favour. Long term value can be created by building a solid base of production and then leveraging that cash flow to grow the company.