The Hazards Of Investing In $100 Oil: Part 2

The Hazards Of Investing In $100 Oil: Part 2

The black hat fits JR Ewing in the TV series Dallas, 07/09/1985 (Part of the Independent Newspapers ... [+] Ireland/NLI Collection). (Photo by Independent News and Media/Getty Images) $100 oil and $7 natural gas make it tempting to invest, but there are all sorts of ways things can go wrong, as history shows. Changing market conditions often expose pitfalls even for experienced investors, including the challenges that arise when a general partner of an oil and gas investment vehicle decides to manage more for their own account than yours. PDC Energy, Inc., formerly known as Petroleum Development Corporation, settled a lawsuit in 2015 with investors that highlighted a divergence between the interests of general partners, those who manage a partnership, and limited partners, those who do not have a say in how the partnership is run because they do not want the liabilities associated with running the partnership. PDC syndicated oil and gas limited partnership interests to high net worth individuals for years. With the money from limited partners, LPs, PDC acquired mineral rights and drilled wells on favorable terms for the investors—frequently just one well per tract if the first well was not a gusher, with some tracts containing