Last updated 2 months ago
Accredited investors are able to access many investment options that often have higher potential for returns and aren’t open to traditional investors. Having accredited investor status means you are a serious investor with the knowledge to place your money wisely. Although there are many options available to accredited investors, here are a few of the reasons why you should consider investing in oil:
High Returns
Investing in oil offers the real possibility of high returns on your investment. Using current technology such as 3D seismic imaging and hydraulic fracturing, oil producers are able to locate and access oil reserves with a high probability of success. One oil well can generate profits that well exceed its cost over its lifetime if it strikes oil.
Tax Advantages
Oil investments offer several key tax strategies to help you reduce your tax burden. Intangible drilling costs are tax deductible in the current year and often constitute 65-80% of the total investment. Regardless of when oil is found, the intangible costs to drill are 100% deductible in the year that the costs were incurred. The cost to purchase and operate oil leases are also tax deductible in the year that they were incurred. Investing in oil can be a very effective way to cut your tax liability.
Quick Results
Investing in oil fields that are currently in production allows you to invest in projects that have already been proven as successful. This means you immediately have access to the rewards of these projects, without the risk.
Aegis Oil is looking for accredited investors who are interested in the low risk and potential rewards offered by investing in Texas oil. We invest in drilling in areas that have been proven to be successful, allowing us to increase the return for our investors and minimize the risk. Call (888) 927-3563 for more information about joining our team as an accredited investor.
Last updated 2 months ago
In today’s unsteady economic times, reducing your income tax burden is an important way to ensure that you are making the most of your money. By putting a portion of your income into oil investments, you can reduce the amount of money that is subject to taxation by the government. Sheltering your income from taxation is a great way to keep more of your money in your pocket. Read below to find out how to use oil and gas investments to lower your taxes.
Tax Deductions
The cost for developing and preparing oil wells is tax deductible as intangible drilling costs. This means that even if oil hasn’t yet been found, you can benefit from lowering your taxable income immediately. Intangible drilling costs usually make up a majority of the total investment. Tangible drilling costs relate directly to the equipment used for drilling and are also 100% tax deductible. These costs can be deducted over an extended period of time.
Depletion Allowance
Once the oil well is in production, you can use the depletion allowance to account for the depletion of the resource as it is extracted. With the depletion allowance, a portion of your income will be tax free. Small companies and individual investors are given an edge with the depletion allowance, since large companies are ineligible.
Low-Risk Investments
Using modern technology such as 3D seismic imaging, oil producers are able to pinpoint the location of oil reserves and place their wells only in areas that are likely to be successful. This means fewer wells need to be drilled and the success rate of the wells is high, allowing for higher returns with low risk to the investors.
Aegis Oil offers investment opportunities in the Permian Basin and other quality oil-producing regions. We lower risk by focusing on proven fields and provide a safe return on your investment. Call (888) 927-3563 to find out more about oil investments through Aegis Oil.
Last updated 2 months ago
It may come as a surprise, but the U.S. is projected to become the world’s leading oil producer in the year 2020, according to a report from the International Energy Agency.
Though many are accustomed to thinking of the U.S. as an oil consumer, the production of shale oil has driven a rise in domestic production. Using new technology to access shale oil has helped the U.S. increase its oil production. Watch this video from The Wall Street Journal to learn more about how the increase in U.S. oil production will affect the world economy.
Aegis Oil offers high-quality investments in wells that are currently active in the Permian Basin region of Texas. Call (888) 927-3563 for more information about oil investment options from Aegis Oil.
Last updated 3 months ago
Aegis Oil offers exciting opportunities to invest in Texas oil production. These links will give you more information about the advantages of domestic oil investing. Oil investments offer a great way to reap a high return and save on taxes. Call (888) 927-3563 to find out more about Aegis Oil.
Find out more about the early discovery of oil in the Permian Basin with this article by the American Oil & Gas Historical Society.
Frank Pickrell was the owner of the Santa Rita oil well, which was the first major rig to discover oil in the Permian Basin of Texas. Read more at this website.
The American Petroleum Institute offers this brochure that explains some of the tax issues the oil and gas industry faces.
One of the reasons why oil and gas investments present a good tax strategy is due to the Depletion Allowance. Read this article to find out more.
Investopedia.com offers a guide to the various tax advantages that come with investing in oil.
Last updated 3 months ago
The Permian Basin in Western Texas and Southeastern New Mexico contains the world’s largest concentration of rocks from the Permian geologic period. Multiple Texas counties make up the Permian Basin, which covers an area that is approximately 250 miles wide and 300 miles long. The Permian Basin has been a major oil production site in Texas for many years. Here’s a look at the history of oil production in the Permian Basin:
Beginnings
The first oil well in the Permian Basin began digging in 1921. Frank Pickrell, head of the Texon Company, named the site “Santa Rita” after the Patron Saint of the Impossible. He christened the oil rig with rose petals given to him by his Catholic investors. Pickrell was successful in finding oil at the site in 1923.
New Technology
In the late 1920s and 1930s, new methods for locating oil deposits were used to discover areas that had been previously untapped. Until then, oil producers had used surface mapping to choose drilling sites, with mixed success. With the advent of seismic technology, deeper sources of oil were discovered, leading to the Permian Basin’s status as a major oil production site.
Bust
In the 1980s, it seemed as though the sun had set on Texas oil production. Due to the economic depression and decline in oil prices, most major companies left the Permian Basin. All that seemed left were secondary and tertiary methods of oil recovery.
Rebirth of the Permian Basin
Because of new technologies such as hydraulic fracturing and horizontal drilling, the Permian Basin is once again filled with oil production sites. The local economy is thriving due to the regained popularity of the Permian Basin with oil producers.
The Permian Basin has a long history of oil production and offering high returns on investments. Call (888) 927-3563 to find out more about investing in oil production in the Permian Basin with Aegis Oil. We make premium acquisitions in proven developmental areas like the Permian Basin.
