Who we are

Suggested text: Our website address is: https://oilwellinvestors.com.

Comments

Suggested text: When visitors leave comments on the site we collect the data shown in the comments form, and also the visitor’s IP address and browser user agent string to help spam detection.

An anonymized string created from your email address (also called a hash) may be provided to the Gravatar service to see if you are using it. The Gravatar service privacy policy is available here: https://automattic.com/privacy/. After approval of your comment, your profile picture is visible to the public in the context of your comment.

Media

Suggested text: If you upload images to the website, you should avoid uploading images with embedded location data (EXIF GPS) included. Visitors to the website can download and extract any location data from images on the website.

Cookies

Suggested text: If you leave a comment on our site you may opt-in to saving your name, email address and website in cookies. These are for your convenience so that you do not have to fill in your details again when you leave another comment. These cookies will last for one year.

If you visit our login page, we will set a temporary cookie to determine if your browser accepts cookies. This cookie contains no personal data and is discarded when you close your browser.

When you log in, we will also set up several cookies to save your login information and your screen display choices. Login cookies last for two days, and screen options cookies last for a year. If you select "Remember Me", your login will persist for two weeks. If you log out of your account, the login cookies will be removed.

If you edit or publish an article, an additional cookie will be saved in your browser. This cookie includes no personal data and simply indicates the post ID of the article you just edited. It expires after 1 day.

Embedded content from other websites

Suggested text: Articles on this site may include embedded content (e.g. videos, images, articles, etc.). Embedded content from other websites behaves in the exact same way as if the visitor has visited the other website.

These websites may collect data about you, use cookies, embed additional third-party tracking, and monitor your interaction with that embedded content, including tracking your interaction with the embedded content if you have an account and are logged in to that website.

Who we share your data with

Suggested text: If you request a password reset, your IP address will be included in the reset email.

How long we retain your data

Suggested text: If you leave a comment, the comment and its metadata are retained indefinitely. This is so we can recognize and approve any follow-up comments automatically instead of holding them in a moderation queue.

For users that register on our website (if any), we also store the personal information they provide in their user profile. All users can see, edit, or delete their personal information at any time (except they cannot change their username). Website administrators can also see and edit that information.

What rights you have over your data

Suggested text: If you have an account on this site, or have left comments, you can request to receive an exported file of the personal data we hold about you, including any data you have provided to us. You can also request that we erase any personal data we hold about you. This does not include any data we are obliged to keep for administrative, legal, or security purposes.

Where your data is sent

Suggested text: Visitor comments may be checked through an automated spam detection service.

Tax Advantages Of Investing In Oil And Gas

 

Unlocking the Potential of Oil & Gas Investments

Delving into the world of Oil & Gas offers a distinctive avenue for investors to seize opportunities in a resource vital to industries such as transportation, manufacturing, and energy-intensive activities.

Leveraging Tax Benefits in Oil & Gas Investment

Investing in Oil & Gas extends unique tax advantages. Deductions for exploration and development costs enable investors to reduce taxable income, ultimately leading to lower overall taxes. Moreover, specific tax credits allow individuals investing in new oil exploration projects to receive credits against income tax liabilities. The U.S. tax code also provides provisions for excluding portions of profits from taxation, subject to specific conditions.

Exclusive Tax Advantages in the Oil & Gas Industry

Bolstered by the Tax Reform Act of 1986, Oil & Gas ventures stand as rare tax-advantaged options for American taxpayers. Notably, working interests in Oil & Gas are exempt from being categorized as “Passive Income.” Additional industry-specific tax advantages encompass:

  1. Intangible Drilling Costs: 100% tax deductible in the first year.
  2. Tangible Drilling Costs: 100% tax deductible.
  3. Depletion Allowance: 15% of gross production revenue is tax-free.
  4. Active Income Deductions can offset business income, salaries, capital gross, and interest income.

Navigating Investment Tax Incentives

Intangible Drilling Costs (IDC) encompass expenses tied to well drilling without a physical component. These intangible costs, like mobilization fees and crew wages, can be fully deductible in the year paid. The deduction amount varies based on the drilling project’s nature.

Realizing Tangible Benefits

Tangible Drilling & Development Costs (TDC) cover physical well components, depreciated over 5-7 years. TDC empowers investors to assess potential returns, compare projects, and safeguard against unexpected expenses.

Empowering Small Producers

The “Small Producers Exemption” introduced by the 1990 Tax Act offers a tax-free allowance of 15% of gross income from an Oil & Gas property, with specific criteria. This benefit excludes large companies, certain sale outlets, and high production ownership.

Transforming the Paradigm of Passive Income

The Tax Reform Act of 1986 redefined passive and active income. Working interests in Oil & Gas drilling programs are categorized as “active” activity, permitting deductions against various forms of income.

 

Disclaimer: For personalized tax guidance, investors are advised to consult their own tax advisors and explore tax implications outlined in the Confidential Information Memorandum. Note: The information shared here, including any attachments, does not constitute a tax opinion or advice. Any reference to U.S. tax matters is not intended for the avoidance of penalties under the Internal Revenue Code or the promotion of specific transactions.

Ready to Invest?

Explore the various project types we offer and learn about their income potential and tax advantages. Let us connect you with one of our trusted drilling operators.