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Best Ways to Invest in Oil and Gas | Investing Insights
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Best Ways to Invest in Oil and Gas

Oil and gas companies and investors: Did you know that the oil & gas industry has several major tax benefits not found anywhere else in the tax code?

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    Oil & gas information

    Frequently asked Questions

    What are some of the best tax advantages of investing in oil & gas?

    As opposed to importing for it, America needs domestic oil and gas production for its own economic growth, security, and sustainability. Hence, the government has provided unique tax incentives to encourage domestic oil and gas production.

    – Intangible drilling Costs
    Refer to the intangible expenses of drilling. These are labor-intensive expenditures related to expenses that you cannot resell like fuel, labor, hauling, chemicals, etc. Intangible drilling costs make up approximately 60 to 80 percent of the well cost and they are eligible to be 100 percent deductible in the year in which they occurred.

    – Tangible Drilling Costs
    Tangible drilling costs refer to costs incurred for the purchase of drilling equipment. They typically make up to about 20 percent of the expenses. These are 100 percent tax deductible, capitalized and depreciated over a 7-year period.

    – Depletion Allowance
    Considered as one of the most attractive benefits to qualified oil and gas investors, the depletion allowance excludes 15 percent of all gross income and production revenue from tax.

    Natural gas and crude oil remain as the major sources of fuel on a global scale. These two most widely used energy sources have literally fueled the technological and industrial revolutions and continue to play a vital role in today’s market. The energy needs both on an international level and in the United States are continuously growing with the constant boom of technology and as brand-new opportunities present themselves. From fueling our vehicles, powering our industries, and providing everything from life-saving medical necessities to commonplace essentials, the role of natural oil and gas is undeniable.

    Needless to say, investing in oil and gas has tremendous financial upside. Savvy investors are now abandoning the investment mainstream to take advantage of the unique set of opportunities that oil and gas investing provides – long-term passive income, significant tax benefits, high ROI potential, and portfolio diversification.

    With expert assistance, any qualified and approved investor can get involved in this lucrative investment opportunity.

    Direct investment with DW Energy allows the investor to be a part of a joint venture. The investor has a direct participation in all aspects of a project and is entitled to receive a share in the revenues or the profits it generates, allowing the investor the potential for greater return of investment plus excellent tax benefits.

    Investing in oil and gas offers a strong combination of investment advantages:
    – Unique tax incentives
    – High ROI potential
    – Long-term passive income generation
    – Portfolio diversification

    Read more about the benefits of oil and gas investing to qualified investors here.

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    Oil and gas investors can benefit from several major tax benefits that are available nowhere else in the tax code.