What to Expect When Investing in Oil and Gas for the First Time

[Posted on October 1st, 2013 by Michael L. F. Slavin]

Investing in oil and gas production may be unfamiliar to many novice investors, but the benefits derived from this type of investment put it into a class by itself. Read on to find out what to expect if you have never participated in an oil well investment venture before. 

U.S. Emerald Energy— A Trusted Investment Partner

U.S. Emerald Energy has a stellar reputation in the oil and gas business for many reasons. Investing in oil and gas with U.S. Emerald Energy gives investors a partner with extensive experience in oil and gas well drilling and can trust in the company’s 21 years of demonstrated experience in oil and gas exploration and development. U. S. Emerald Energy has a company policy of only locating new wells in areas with proven undeveloped petroleum reserves. Proven undeveloped reserves (PUD) are areas that potentially possess commercial quantities of oil and gas and have already been drilled, but the initial well only hit the edges of the formation.  By utilizing 3D seismic and other technologies, a new well can then be drilled into the center of the proven formation to extract the remaining production. The reserves from a well drilled into the center of the formation can greatly exceed those from a well drilled only on the edge of the formation.

How Investing With U.S. Emerald Energy Works

When investing in oil and gas wells with U.S. Emerald Energy, the investor enters a joint venture partnership with the corporation to provide funding for one or more oil and gas wells. The major costs of drilling and completing a well include supplies such as drilling mud, well casings, mobilization and demobilization of drilling equipment and wages for employees who perform the work. The actual drilling process can take up to several weeks, depending upon the type of soil and rock that are present and the total depth of the well. 

Benefits of Investing In Oil and Gas

America has a wealth of untapped oil and gas reserves that, if developed, could create more jobs for Americans while diminishing the nation’s reliance on oil produced by foreign countries. The U.S. government has recognized the importance of developing domestic energy sources and has, therefore, allowed tax breaks in the federal tax code for people who engage in or invest in domestic oil and gas production. The costs of drilling an oil or gas well are 100% tax deductible, as is 15% of the gross income derived from a successful well drilling project. It is important to note that the costs of well drilling and completion are 100% deductible even if a well is a dry hole. A productive well can create a long-term income stream that can last many years and can be used as a second income or even as a source of income in retirement. 

Seeing Your Investment in Action

Investors in oil and gas wells have the opportunity to be active partners during and after their wells are being drilled. U.S. Emerald Energy is always glad to meet with investors and will provide maps and directions to each well. In almost every case, U.S. Emerald Energy will accompany an investor to visit his or her well, so that any questions may be answered during the trip. However, a joint venture partner is not required to participate any further after finalizing the initial investment, and while many investors are interested in seeing their actual wells during construction and operation, some prefer to act as silent partners and reap the benefits of the investment without ever visiting the well site.

If you are new to oil and gas investing and would like more information, contact U.S. Emerald Energy by web or phone to find out more about this unique investment opportunity.
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