Feb 24, 2015

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Understanding oil and gas investment benefits

Understanding oil and gas investment benefits

America is addicted to using oil, and as such the oil industry within our borders is alive and well. Many states in the continental USA are producing oil and gas right now, with plenty of potential for even more underground reservoirs to be discovered. Investing in the exploration and collection of these fuels can end up being an extremely profitable return for wealthy individuals and corporations alike.

Who should invest?

Corporations looking to expand their investment portfolios can consider entering the oil industry. In comparison to some other investment opportunities, the oil industry is going strong and has been for years. Chances are good it will remain strong in the future as well. America goes through a lot of oil, and we produce about 60% of our own oil with the remaining coming from Canada, Saudi Arabia and other countries. Investing in barrels can be a roller coaster ride of up and down fluctuations in price and buy-sell windows, but the drill itself can provide a steady and reliable return for an extended period.

Are there benefits?

There are many benefits to investing in the oil and gas industry. Not only do you end up getting a passive income on your drill and its production, but you also end up with some tax benefits including the intangible drilling cost deductions. This means the initial cost of building the well you are investing in; such as the land surveys and clearing, construction crew wages, construction or repair parts, grease, chemicals and more are able to be deducted on your taxes for the year the costs were incurred. Many investors find this to be extremely beneficial on a corporate level when investing in multiple drills in different areas or states.

Can independent investors join the industry?

There is no law that says a wealthy individual cannot invest in the oil industry, in fact, several have already done just that. From buying stocks or shares in barrels to funding the purchase of an entire well, individuals looking to start or expand their portfolio can find a very lucrative potential in the oil industry without the partnership of a major corporation. With the investment of $90,000 you can enter the oil industry by funding a drill and start seeing a return on your investment in a mere 100 days after it’s up and running. The lucrative potential in this route is well worth the general investment risks involved.

Investing in drilling operations can create many oil and gas tax benefits. Contact Oil Boom USA for all the information you need.

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