FSD issues SEC backed cautions to oil and gas investors

FOR IMMEDIATE RELEASE
Lexington, Kentucky, United States of America (Free-Press-Release.com) April 10, 2011 -- (IJRNEWS 5/2/2011) Los Angeles, CA -- When International Journalism Review (IJR) anonymously filled out a contact form on the Five Star Developments website (www.FiveStarDevelopments.com), the results were a surprise when the assigned journalist received a return phone call with an abundance of informative information coupled with straight forward general cautions.

In the continued effort to research domestic oil and gas opportunities and pay close attention to the areas that surround it, IJR sets up a mystery shopper in this case. The analysis on the energy arguments that have become a huge part of the Obama administration and just about every presidency prior as well has reached a point where in depth investigation into this investment that seems to cater predominantly to the rich.
IJR learned from both Five Star Developments (FSD) and the SEC (www.sec.gov/oilgasscams.htm) that if the oil and gas investor has not specifically requested information about an investment opportunity but begins to receive unsolicited materials concerning oil and gas venture opportunities, that such an investor should proceed with caution. It is frowned upon in this specific industry and apparently illegal to directly solicit for this as well. IJR will address the reasoning for this in future investigative articles.

Another area of caution pointed out by FSD and the SEC was high pressure sales tactics. FSD reminded us that a real investment specialist will not need to pressure a potential investor; they will simply present the information available about the well and help such an investor understand the nature of the opportunity. As an oil and gas investor, both FSD and the U.S. Government's SEC warned one should run, not walk from the person using high pressure sales tactics.

Perhaps the principal red flag a salesperson (oil and gas investing advisor) can make is the promise of high output. While every oil and gas patron wants to believe that the wells in which are invested will always be successful, the fact is that the investment carries high risk, and no one can guarantee the output. The oil and gas investor must be a qualified investor because he or she must be able to afford to handle the level of risk involved. However, IJR questions why at the same time, the U.S. Government offers such tax breaks not only to the investor but to the company drilling for oil and gas as well. See IJR tax advantages article linked to the end of this report.

Though today this is one of the most talked about topics in our country, the rise in the prices of oil and gas and their predicted continued rise because of supply and demand alone, we see very little exposure on domestic opportunities even though these opportunities are a heavily backed investment by U.S. Government. Especially important in today's troubled economy, oil and gas savings allow investors to diversify and strengthen their portfolios with a commodity that is in steady demand. In addition, investors have the unique opportunity to play a key role in promoting the country's energy independence through domestic drilling programs that help alleviate the nation's dependence on foreign oil.
The continuously fluctuating prices of oil and gas support the economic front of oil and gas reserves. As the present market scenario has generated a keen interest in oil and gas funds, it is very important to equip any person considering this type of speculation with sufficient knowledge to refrain the unscrupulous promoters from taking advantage of a speculative opportunity by engaging in any fraudulent practices. IJR suggests it is better to be prepared going into the industry for successfully syndicating the oil and gas investments.

As oil and natural gas supplies are declining, global demand is on the rise. The top ten oil-consuming countries alone consume over 50 million barrels of oil per day*. Even with the rising popularity of alternative energy sources as a means to fuel our cars, oil cannot easily be replaced as it is used to manufacture virtually everything humans use on a daily basis, from clothing and pharmaceuticals to detergents and insulation. There are thousands upon thousands of petroleum-based products that humans rely on every day. All of this translates into opportunity for know-how investors.

Through direct participation programs in oil and gas, investors actually own a portion of the well and receive a share of the cash flow generated via monthly disbursements. In addition to the income potential, oil and gas nest eggs offer substantial tax benefits, which the U.S. government has designed to encourage domestic drilling. Since the Tax Reform Act of 1986, direct participation programs in oil and gas are one of the few remaining investments that allow investors to shelter income, making it one of the most tax advantaged investments today. Investors may be able to deduct as much as 65 to 100 percent of their investment within the first year, whether the well is success successful or not, and 15 percent of an backers income is tax-free.

IJR found in this niche, sponsors can enjoy the privilege of huge tax breaks, by making oil and gas funds part of their portfolio. The best part seems that while making oil and gas investments, the investor need not pay any closing or additional costs. IJR always advises any potential qualified investor to make an informed investment and use the advice offered by a mainstay in the oil and gas industry such as Five Star Developments whose warnings are paralleled with the governments own securities and exchange advice to these same investors. There are other very qualified domestic Oil producers that offer investment opportunities, however, FSD was the fastest to respond with information beyond the scope of our investigation on various occasions and seemed to mimic the warnings issued by the SEC, thus offering credibility to FSD and their organization as well.
Chris Sloan / Senior Journalist / M.S. showcases government

International Journalism Review / http://www.InternationalJournalismReview.com
internationaljournalismreview@gmail.com / 347 882 4943 or 949 533 8454

Sources
1. Securities and Exchange Commission
Office of Investor Education and Advocacy
100 F Street, N.E.
Washington, D.C. 20549-0213

http://www.sec.gov

http://www.emailwire.com/release/60981-Government-Tax-Advantages-Point-to-the-Direction-of-Oil-and-Gas-Investors.html

http://www.investorideas.co/tax-advantages-of-oil-and-gas.html

http://investorplace.co/oil-versus-gold.html

http://www.investorideas.co/oil-over-gold-a-cnbc-investment-choice.html


Company: International Journalism Review
Contact: Chris Sloan / Senior Journalist / M.S.
Phone: 8058077201
Email: InternationalJournalismReview[@]Gmail.com

More information can be found online at http://www.FiveStarDevelopments.com

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