Pros
- Profit margins always skyrocket when deep well exploration hits an abundant oil reserve
- A diverse portfolio that relies on multiple investments alongside oil will also be able to maintain a balance when stocks stumble.
Cons
- The profitability of an investment depends on a lot of local and international factors that are often beyond the investor’s control.
- Buying into a limited partnership or private company, where the gains are bigger, also means having to pay commissions that are higher than standard stockbroker fees.