Investing in Oil and Gas Can Lead to a Steady Monthly Income

[Posted on November 16th, 2013 by Michael L. F. Slavin]

There are many benefits to investing in oil and gas wells. The money invested goes to create American jobs and promote domestic energy production, as well as being tax-deductible at the federal level. These are all excellent features of this unique type of investing, but the factor that most investors find attractive is that investing in a successful oil or gas well creates a long-term stream of income for the investor. 

Investing With a Trusted Partner

Investing in oil and gas with U.S. Emerald Energy is extremely straightforward. The client agrees to help fund a well-drilling project, and U.S. Emerald Energy locates a likely spot for drilling in an area with proved, undeveloped oil and gas reserves and provides the labor and materials needed to drill and complete the well. The full amount of the investment can be taken as a tax deduction on the investor’s federal tax return and, if the well strikes oil or gas, the investor receives a dividend check for the life of the well. A portion of this income stream, 15 percent, is also completely free from federal taxation. The monthly dividend amount is calculated based upon the quantity of oil or gas produced from the well, the current market prices for the particular commodity, and the percentage of ownership owned by the partner.

Income for Retirement

The creation of a source of regular income is appealing to many investors who are facing retirement. With millions of Baby Boomers retiring every year, Social Security offers anything but financial security to an elderly person who is dependent upon it as a sole source of income. Corporate pension plans once represented an ironclad promise of retirement security, but many are rapidly going bankrupt. Investing in one or more productive oil or gas wells incorporates diversification into a portfolio and produces an income based upon a commodity that is highly desirable now and is likely to remain so for the foreseeable future. 

A Second Income for Younger Investors

Younger investors also benefit from having extra monthly income. For a young married couple, a second income can provide a means to prepare for early retirement or to replace the income of a spouse who chooses to stay home with young children. The income can also be funneled into other types of investments, such as real estate or another oil or gas well. 

Knowing Your Investment

An investor should never put money into an investment he or she does not fully understand and should never trust a company with a limited track record of managing investor’s money. U.S. Emerald Energy has over 20 years’ experience in the oil and gas business and makes every effort to drill in areas with the best likelihood of success. Even when a well is unsuccessful the investor may receive a completion refund plus the full tax deduction which can help to offset a significant portion of the lost investment. Even still, when you consider that industry averages are 80% or higher for successful development drilling, the odds of that happening are actually quite low.

Participating in an oil or gas well project with U.S. Emerald couldn’t be easier. Contact U.S. Emerald Energytoday for information on recent drilling projects and how oil and gas well investing can create a steady income for you.

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