Which Oil Well Investment Is Right for You?

[Posted on June 8, 2014 by Michael L. F. Slavin]

When it comes to investing, it can be difficult to know who to trust and where to turn for the greatest possibility of success. This statement is as true for oil well investing as it is for more conventional investment vehicles. The most responsible way to invest in any commodity, financial product or investment vehicle is to join up with reputable, established partners and only place your money into ventures that you fully understand. Keep reading to learn more about what makes an oil well investment with an established energy company a good idea for almost everyone.

Working With a Partner You Can Trust

The oil industry can be difficult to break into for an individual investor or even an oil well investment group. Finding the best areas to drill, performing all the required legwork and successfully completing a well, takes the knowledge and skill possessed by an experienced team of professionals. U.S. Emerald Energy makes the process easy for individual investors who want to take part in the energy business by doing all the upfront research required to find the most promising drilling locations. As an established energy company with decades of experience, U.S. Emerald Energy has access to the necessary equipment to perform seismic testing and employs research staff that is up-to-date on computer modeling and other new technologies. U.S. Emerald Energy also has the machinery readily available to drill and complete an oil production well. These are all aspects that U.S. Emerald Energy brings to the table that make it easy for an individual investor to get in on the action in the oil production business. As a partner in the process, the investor simply provides the necessary financing to purchase supplies, fund labor costs, mobilize the drilling equipment and cover other expenses.

Realizing the Rewards

The rewards of investing in a successful oil well project are financially worthwhile in several ways. The aspect of oil well investing of primary interest to most investors is the possibility of creating a long term income stream that will be received in the form of monthly distribution checks for as long as the well is productive. It is impossible to estimate the amount of each monthly check and how long a well will remain in production. However, the average new oil well currently produces between 100 and 500 barrels of oil a day, and a well can remain productive for decades. In addition to the creation of long-term income, the investor also has the opportunity to take advantage of tax breaks that simply are not available with other forms of investing. The entire amount of the initial investment is subject to federal tax deductions. The timetable for receiving the deductions depends on the amount of the investment spent on intangible expenses versus equipment and supplies. The intangible portion of the investment can be taken as an immediate tax deduction while the remainder is considered a depreciable business asset and handled on the standard schedule for depreciation. Fifteen percent of each monthly distribution check is also exempted from federal taxation.

This nation has vast amounts of untapped oil reserves, and every new oil production well that one of our investor’s funds is a step in the direction toward utilizing our own domestic resources instead of depending on other nations for fuel and energy. For more information to help you decide whether this singular type of investing is right for you, call U.S. Emerald or check out our easy-to-navigate website today.