U.S. Oil & Gas Investment Opportunities
An investment portfolio with ownership in producing U.S. oil and gas properties can meet a wide variety of aggressive investment objectives including high return on investment (ROI) potential, significant tax benefits, and portfolio diversification.
Decades of passive income and strong ROI potential
Direct ownership in oil and gas wells may be a great way for investors to benefit from returns above and beyond most market-based investments. Improved technology and the shift to developmental, infield drilling in both proven conventional fields and unconventional shale have changed the dynamics and lowered the overall risk of investing. Improved technology and higher drilling success rates combine to set the stage for strong investment performance.
Energy investments are hard assets with low performance correlation to stocks & bonds. As a risk diversification strategy, direct energy investing may provide a buffer against fluctuating market conditions and inflation movements.
Attractive tax incentives
Ownership in drilling programs and producing oil and gas properties offer some of the most attractive tax incentives for investments available. The IRS provides tax incentives to encourage private investments in domestic oil and gas production.
- For drilling investments, approximately 60-80% of well costs may be fully deductible in year one as intangible drilling costs.
- The remaining amount is categorized as tangible costs and may be depreciated over time.
- In addition, 15% of a property’s gross cash flow is tax free in the form of a depletion allowance.
- You will also enjoy an additional cost depletion allowance allows for 100% deduction of property lease costs, sales expenses, legal and administrative accounting expenses.
Whether you are simply looking for the excitement of an investment in oil and gas exploration or are looking to diversify, we invite you to learn more to determine if an Aresco project suits your investment objectives.
While direct energy investments offer many advantages, they are not without risk. Prospective partners should consult their attorney, accountant, and financial advisors before investing.