[Posted on June 20th, 2013 by Michael L. F. Slavin]
Finding a good investment that is both tax deductible and that generates a steady stream of income is becoming harder every day. Oil and gas well investing offers the unique opportunity to invest in a commodity that enjoys special tax breaks from the federal government while providing regular dividend checks. Investors with U.S. Emerald Energy Company do not own company stock, they actually own a portion of the well in which they have invested. Read on to find out more about how to invest in oil and gas wells and the great benefits that these investments can provide.
Profitability of Oil and Gas Production
The high demand and shrinking supply of petroleum and natural gas translates to great returns for companies that extract and produce these commodities, as well as for private investors who know how to invest in oil and gas production wells. U.S. Emerald Energy allows individual investors the opportunity to take part in one of the most profitable business sectors in the modern economy by financing the construction of oil and gas extraction wells.
Investor Tax Breaks
Participation in oil and gas production is a rare method of investing that offers protection from some federal taxes. Domestic oil and gas production creates jobs for Americans, lessens America’s dependence on foreign energy companies, and helps protect the environment by reducing the risks associated with shipping oil or natural gas over long distances. Because of these and other benefits to the American economy, the United States tax code is structured to allow tax deductions to investors who finance oil and gas well development. The costs financed by an investor to drill a well are 100 percent tax deductible, as is a portion of the income derived from a productive well.
Oil and gas well investing offers an excellent opportunity for individuals who wish to receive a steady stream of income from an investment. For each productive well, an investor will receive a regular dividend check. These checks are based upon the amount of oil or gas pumped from a well and the price of the respective commodity at the time of production. For most individual investors, 15 percent of the dividends received from oil and gas production are completely free from federal income taxation, and the remainder is taxed as personal income. The life of a petroleum or gas well varies, but U.S. Emerald Energy seeks reserves with multiple production layers, prolonging the productive life of a well and thus providing dividends to the investor for a longer period of time.
Experienced Exploration and Drilling
U.S. Emerald Energy uses state-of-the-art exploration techniques, including seismic testing and 3D modeling, and decades of drilling experience to locate the most likely areas for productive oil and gas reserves. U.S. Emerald Energy will only drill in an area with proven production.
Although no existing exploration methods can guarantee a productive well, U.S. Emerald Energy has a high rate of success in finding productive formations. In the event that a well does not strike oil or gas, the initial investment in a well is partially protected because it is 100 percent tax deductible, unlike most other types of business investments which do not qualify for any tax deduction.
If you are an individual investor who would like to learn more about direct investing in petroleum and natural gas, visit U.S. Emerald Energy Company’s website today for more information about this unique investment opportunity.