Not All Oil and Gas Opportunities Are Created Equal: Tips for Investing in This Unique Field

[Posted on January 30th, 2014 by Michael L. F. Slavin]

Investing in oil and gas may sound like a complicated form of investment reserved for high-rollers and multi-millionaires, yet opportunities do exist for individual investors to join in on this unique type of investing. You can participate in oil and gas well investing even if you know very little or nothing about exploring for new reserves or running a drill rig. However, an investor should always take the time to research the available opportunities and find a reputable company with which to invest through. With over 20 years in business, U.S. Emerald Energy has been standing by to become your partner in oil and gas well investing through our structured direct partnership arrangement.

Making the Most of Your Portfolio
Most investment advisors recommend a diversified portfolio as the best approach to investing. Diversification distributes an investor’s money over numerous different investments which helps decrease the risk of losing everything if one type of investment vehicle is not successful. Investing in oil and gas well production is a great way to add a completely unique type of investment to a portfolio. Taking part in multiple drilling projects is itself a form of diversification. By spreading money over several different projects, an investor automatically increases the chances of participating in a successful well that may produce an income stream for many years to come.

Learning the Ropes
The benefits of investing in an oil or gas production well are many. Few other types of investing even come close to the tax-protected status given to an oil and gas well investment. Not only does the investor have the opportunity to create an income stream from every successful well that will continue as long as each well is productive, the investment is eligible for several federal tax breaks. The initial amount of the investment is completely tax-deductible, including the standard seven-year depreciation schedule used for hard assets and as a direct deduction for the intangible drilling cost (IDC) portion of the investment. This is true even if a particular drilling project comes up dry. In addition, 15 percent of the resulting income is also realized tax-free. U.S. Emerald Energy specializes in making this type of investing as uncomplicated as possible and brings the company’s many years of experience to the table for every investor.

Working With an Experienced Team
As with every other category of investment, an individual should never invest in oil and gas wells without completely understanding how the process works and thoroughly investigating the company that will be managing the investment. U.S. Emerald Energy has been in the oil and gas business for over 22 years. Over the years we’ve built an excellent reputation for customer service, and we make tremendous efforts to be good stewards of our partner’sfinancial investments into each well. Our team employs every method at our disposal to find prime locations for drilling that exhibit the highest likelihood of success. We start out in areas with proven, yet undeveloped, PUD oil and gas reserves and then use a combination of cutting-edge seismic technology, 3-D computer modeling software, and experience gained from decades of oil and gas exploration to pinpoint areas in which to drill.

If you find the prospect of oil and gas well intriguing and are interested in more information, contact U.S. Emerald Energy today. We’ll be glad to answer your questions and explain the finer points of oil and gas well investing and how it can benefit you.

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