Starting your plan to purchase an oil well

Making any investment decision requires planning and educating yourself on the subject at hand, but with the current economy an investment in oil exploration and production could be the right choice for larger corporations to consider. With your investment into American based oil production, you are helping to create new and long-term jobs for residents in some lower income areas. You can also benefit the country itself by helping America gain oil independence from countries such as Canada and Saudi Arabia. While the USA does import about 40% of its oil from outside countries, we proudly drill and collect the remaining 60% ourselves. This means there are plenty of potential opportunities for you to make a very sound investment within the industry.

Investing in crude oil

Wealthy individuals and corporations looking to expand their investment portfolios should consider the lucrative potential of oil wells and drilling. As with any investments, there are risks involved – but once an educated selection has been made in where to place your funds you can earn a very healthy return. Buying stock in collected oil or gas could mean your investment will change often as oil prices fluctuate, but a drill can offer a long term sustainable income for a much longer period of time.

The many tax advantages of oil investments

There are several advantages available for investors in oil and gas exploration and collection. If your investment is held through a partnership, the income generated from the well is not always considered an income from a passive activity. The intangible costs of the actual drill construction usually make up about 65% of the overall investment cost and are 100% deductible on your tax papers for the following year. Depletion allowance allows for up to 15% of all gross income from your well to be excluded from taxation, though this advantage is usually limited to smaller production fields.

Can anyone invest in this industry?

While it’s normally limited to larger corporations looking to expand their investment portfolio or revenue potential, wealthy individuals have been known to enter the oil industry through the purchase of a single well. Finding a company that will work with you in this investment route is a great way to get started since you never want to just jump in alone. Educate yourself on all of the risks and potentials before you seriously consider the investment; but if done properly, it can be a very lucrative investment for even a single individual to make.

If you’re considering purchasing an oil well as an investment move for your corporation or portfolio, look no further than Oil Boom USA for relevant information on the process.

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