[Posted on April 14th, 2014 by Michael L. F. Slavin]
Investing with an experienced partner is always a good idea, regardless of the type of investment vehicle. This is especially true when it comes to a complex industry like petroleum production. It’s almost impossible for an individual investor to gain enough knowledge and first-hand experience to take on investing in oil wells without the help of a tried and true company like U.S. Emerald Energy. Below are several reasons why you should team up with U.S. Emerald Energy and invest in the oil industry.
Investing With an Established Partner
U.S. Emerald Energy is backed by over 22 years of experience in the energy production business, and we clearly structure our investment agreements as direct partnership ventures. Investors place money with us for the purpose of funding a specific oil well. Our team then uses the investment with an operator who will acquire the necessary supplies, mobilize equipment, provide wages for workers and cover any other expenses incurred during well drilling and completion. As our partner in the venture, we keep the investor apprised of all developments, and the individuals investing in oil wells may visit his or her well at any time during drilling or after the well is completed.
Performing the Necessary Research
Another thing that makes U.S. Emerald Energy a great investment partner is that we put our extensive experience to work for each investor. Unlike some other energy companies, we don’t unnecessarily risk our investor’s money by drilling in unstudied or wildcat areas. Instead, we look to areas that have been demonstrated to contain productive reserves, and we don’t start drilling until we’ve thoroughly researched a location. We’re equipped to review modern seismic testing, a method of subsurface exploration that employs seismic waves to map geologic formations and oil deposits. We also utilize the most up-to-date computer software to produce accurate maps that allow us to locate the most promising areas to situate new wells.
Benefitting From Your Investment
The primary reason for making any investment is to experience a worthwhile return. When investing in an oil production well, the return on investment takes the form of a regular distribution check. The checks are sent out monthly by U.S. Emerald Energy, and they’ll continue coming as long as the investor’s well remains productive. It’s difficult to predict the amount of each monthly check because the checks are based on the quantity of oil removed from the ground and the current price of oil. It’s also impossible to know exactly how long a well will remain productive. However, U.S. Emerald Energy makes an effort to ensure that each well stays in production for as long as possible by drilling in areas with multiple productive deposits that can be tapped by a single well.
Enjoying Tax Breaks
Oil production wells offer unique tax breaks to individuals who choose to invest in them. The federal tax code is structured to allow the entire amount of the investment to be taken as a tax deduction. The portion of the investment used to fund tangible equipment is depreciated like other types of hard business assets, and the intangible portion of the investment can be deducted immediately. These tax breaks are available to every investor, and they also receive an additional tax break of which 15 percent of the gross income from the well is tax free.
We’re always glad to meet with prospective investors to explain in detail how we make investing in oil wells easy and straightforward. If you’d like to learn more about making U.S. Emerald Energy your trusted oil well investing partner, contact us by phone or email today.