WHY INVEST IN OIL & GAS?
First of all, there is always going to be a need for oil and gas. The US Energy Information Administration (EIA) estimates that world energy consumption will grow by 53 percent between 2008 and 2035. This demand will deliver benefits for owners of producing wells and energize returns when market prices adjust upwards.
Cash flows and quick break-even
Owning this hard asset has the potential for accredited investors to enjoy a rapid return of capital with a steady stream of monthly cash flows. This allows you to re-invest your money in another one of our projects or redeploy it somewhere else.
Federal Income Tax Benefits
As part of its efforts to reduce US dependence on foreign suppliers by boosting domestic oil and gas production, the US Congress has created a variety of tax incentives. Depending on the well, up to 80 percent of your costs may be written off in your initial year of investment the remaining 20 percent written off over a 7-year period. There are even further benefits that only apply to small oil and gas producers like Stateside. As a result of what is known as “depletion allowance” the tax code allows us to reduce your taxable revenue by 15 percent. Unlike some other tax incentives, there is usually no non-cash taxable income (“phantom income”). Your personal tax advisor can provide more detailed information on what tax advantages apply to you.
Owning a hard asset
Opportunity to own a working interest (percentage) in several operating wells in NW Pennsylvania producing high quality motor oil and natural gas.
Physical invulnerability of oil and natural gas reserves
Safely buried there for millions of years, Oil & Gas cannot deteriorate, it cannot easily be stolen, and it cannot be destroyed.
Onshore oil and gas properties and reserves in the United States are both physically and politically safe in a geopolitically troubled world.
Inflation Hedge that Delivers Cash Flow Even in a Depression. Oil and gas are the ultimate defensive investment. As gold, oil and gas are an excellent hedge against inflation, however unlike gold and other inflation hedges, oil and gas will deliver a cash flow even in a depression.
The Power of Oil
Oil and natural gas have proven time and time again to provide safe long-term economic value. They are both very liquid commodities that are essential to the worlds’ growing industrial societies providing fuel, power and food.
Diversifying your portfolio
Diversify your portfolio with an investment that has no stock market risk, no bond basis risk, no interest rate risk, and no credit risk. We also like the idea of helping America become energy independent.