These are ventures undertaken by investors who are risk takers. The investors undertake the projects with an aim of getting future returns either in short run or long run. Short term projects does not involve heavy capital, the risk are minimal and returns start flowing within a short period of time that is a period less than five years. Long term venture take more than five years, require heavy capital and are faced with a lot of risks. So oil and gas investments can fall into these two categories depending on the type of venture undertaken by investor.

There are few methods of evaluating the period in which a project will take to give returns, one of them include payback period. Payback period takes into account initial cash outlay used by investor and the accruing cash inflow, it is the time taken for cash inflows to march the amount of money used. In this technique an investors chooses a project that a shortest time possible.

The other technique is internal rate of return, it evaluates how much return an investor will get from a certain project, and the choosing criteria is an investor chooses a project with high internal rate of return. If someone wants to take up the gas and oil venture they should first study the market wisely and identify markets trends so that they can make wise decisions on when to invest.

Those who want to directly be involved in drilling of gas and oil it is recommendable since this is a lucrative venture but they ought to be cautious. This is because such projects require heavy cash outlays and one cannot afford to drill a well then realize later it has no enough reserves.

Entrepreneurs in these sectors should first answer this primary question, why did such deal or project come their way. This is critical as it concerns capital intensive venture, it matches capital with project on hand. Appropriate capital will be generated by educated investors who know one or two things on such projects, they understand the technical issue and legal issues involved.

Those who want to take up this venture should be in a position to evaluate risk involved properly and come up with mitigation measures to protect them from such risks. This business is not for those with faint heart or those investors who are risk averse, it is for risk takers. This is because the venture is extremely risky.

Drilling thousands feet deep in the ground, perforating it accurately, steel or cement casing the hole, and outfitting so that oil can be brought to earth surface is a process which is very sensitive and dangerous. It can lead to loss of lives or environment pollution. The process is associated with very expensive hiccups but irrespective of this hiccups it is a good venture with good returns.

These people should practice honesty, exercise integrity all the time and have experience in the sector. Experience is needed the most, have the people you are engaging worked on such or similar projects before, do they have enough exposure and are they licensed to carry out such projects, these are some of the things one should look at before working or engaging third parties

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