Safe, Easy 7.4% Income from Decrepit Oil Fields

Owning an old, beat-up, decrepit oil field is lucrative. Fortunately, you don't have to be an oilman or industry insider to do it. In addition, the way these ownerships are set up means shareholders make money regardless of whether the oil price goes up or down. Let me show you how it works... One of the oldest and largest oil fields is Prudhoe Bay, discovered in 1968 in northern Alaska. At its peak, Prudhoe produced 1.5 million barrels per day. Now, production is only 189,100 barrels per day. In other words, the field is in decline. But it still accounts for about 4% of U.S. oil production. And it remains the largest oil field ever discovered in North America and the 13th largest in the world. More importantly for you and me, it's one of the safest sources of cash in the market. BP, the current operator of the field, set up an investment vehicle called a "royalty trust" around Prudhoe Bay's production. A royalty trust is a simple business built around income from a long-lived asset (like a mine, a book, or a song). The trust receives the income and passes it directly on to shareholders, while paying little or nothing in corporate income taxes. The BP Prudhoe Bay Royalty Trust BPT is one of the simplest ways to own oil income in the stock market. BPT has rights to 16.4% of Prudhoe's first 90,000 barrels of production per day. Continue reading the article.