Why Oil and Gas?
Oil and natural gas, the source of more than 65% or our nation’s energy supply, has a significant effect on almost everything we do. It heats our homes, fuels our cars, and cooks our food. We Americans consume 20.68 million barrels of oil and 653 billion cubic meters of natural gas every day, by far the world’s leader.
Fortunately, we have the ability and resources to produce it. Unfortunately, it’s not that easy. Recognizing the inherent risks, our government grants extremely favorable tax deductions for operators and investors including intangible drilling costs (100% of the investment the year it is drilled, which is normally up to 85% of the drilling costs), tangible drilling costs (the balance of the drilling costs depreciated over a 7-year period), and depletion allowances.
It is the best tax advantaged investment in the market today.