Keeping Track of Your Oil and Gas Investments: What Every New Investor Should Know

[Posted on December 3rd, 2013 by Michael L. F. Slavin]

U.S. Emerald Energy is a company dedicated to providing investors with an opportunity to take part in oil and gas well development. Oil and gas investments provide a way for investors to create a regular stream of income while also benefitting the United States economy. 

A Different Type of Investing

Oil and gas investments are different from many other types of investment vehicles. With some investments, an individual puts money into the investment and then realizes a return when the financial product or asset is sold. Other investments involve small payments over a long period of time that are then withdrawn either as a lump sum or in regular intervals after years or decades of paying in. Oil and gas well investing provides an opportunity to turn a lump sum investment into a regular monthly income without the long wait required of other types of investment. 

Making Investing Easy For You

U.S. Emerald Energy uses the funds entrusted to us by investors to pay the costs of drilling and completing oil and gas wells, and, in return, the investor receives a regular monthly distribution check if the well goes into production. The amount of the monthly check is dependent on the production of each well and the price of oil or gas. U.S. Emerald Energy selects projects with the most modern research methods available and prefers to drill wells in areas with multiple levels of productive oil or gas reserves. This helps to provide the longest possible stream of income for every partner involved in the well. We also keep the partners informed throughout the process, and everyone is always welcome to visit their well site at any time. The most exciting time to visit the well is during the drilling process.

Special Tax Breaks for Partners

Unfortunately, most investments also involve the government helping itself to a portion of the proceeds in the form of taxes. Oil and gas well investing offers a unique way to create an income while simultaneously minimizing the amount of taxes paid. The federal government has structured the tax code to provide special protection to oil and gas well investments because a reliable domestic supply of energy is important to the continued growth of the United States economy. When funding an oil or gas well drilling project, the investor is eligible to receive three different tax deductions from his or her federal taxes. First, the cost of the physical supplies needed, including drilling mud, well casings, drill bits and pipelines, can be depreciated over seven years. Second, the intangible costs of drilling, including labor, professional services and other related costs, are eligible to be taken as a deduction the same year that the well is drilled. These expenses can be deducted even if the well drilled is not successful. Finally, 15 percent of any gross income derived from a productive well is also free from taxation. 

Although the success of a well project cannot be guaranteed, and even the best research and drilling methods sometimes do not pan out, oil and gas well investing presents intriguing possibilities for the individual investor. For more information about our company, our recent drilling projects and how you can participate with us in one or more income-producing wells to complement your investment portfolio, visit ourwebsite or call today. Whether you are a beginner or an experienced investor who is simply new to oil and gas well investing, we will be glad to help you discover if oil and gas well investing is right for you.

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