Alternative Investments: Energy

http://ift.tt/1fkRjbw By Sameer Jain:

Energy as a portfolio component of a durable income strategy

Investments in energy, particularly oil and gas investments, can serve as a vital component of a durable income strategy, and thus warrant a dedicated allocation within a diversified investment portfolio. A properly constructed, durable income-producing program that includes an allocation to oil and gas investments can reasonably be expected to provide investors:

1. Current income

2. Attractive absolute and relative return potential

3. Diversification benefits

4. An inflation hedge

Within the energy sector are a wide range of investment opportunities, each with different cash flow and asset characteristics. These subsectors include exploration and production, midstream and energy services.

U.S. energy independence: once thought impossible, now projected to occur within two decades

Recent U.S. crude oil production activity suggests a promising future for the U.S. energy industry. 2009 to 2011 marked the first time the U.S. experienced three consecutive years of crude oil production increases

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