As high net worth investors grow restless in today’s low yield environment of bonds and low interest rates, many are more willing than ever to abandon the investment mainstream in search of opportunities that may deliver higher returns. With a strong combination of long term passive income and high ROI potential, significant tax benefits, and portfolio diversification, direct participation of investing in crude oil and natural gas joint ventures meets a wide variety of aggressive investment objectives.
Investing in energy can provide decades of passive income and strong ROI potential. Why invest in crude oil and natural gas? With crude oil and natural gas prices on the rise, direct participation in oil and gas investments can be a great way for partners to potentially benefit from returns that outpace most market-based investments. But there’s more to the story than the price of oil.
Improved technology and the shift to developmental, infield drilling in both proven conventional fields and unconventional shale have changed the dynamics and lowered the risk of investing. Improved success rates and smart, targeted investments in proven, producing fields with established infrastructure set the stage for strong investment performance.
As a hard asset with low correlation to stocks & bonds, energy investments could protect your portfolio from short-term market fluctuations. While no single investment strategy is suitable for everyone, exploration and/or production-based energy investments offer the potential for higher returns than many traditional investments. Direct energy investments (a portfolio with ownership in producing oil and gas properties) enjoy low correlation with other traditional asset classes and generally positive correlation with inflation. As a diversification strategy, a portfolio with ownership in such an investment may provide a buffer against fluctuating market conditions and inflation movements.
Oil and gas projects offer some of the most attractive tax incentives for investments. The IRS provides tax incentives to encourage private investments in domestic crude oil and natural gas production. For drilling program 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 (generally between 5 to 7 years). In addition, 15% of a property’s gross cash flow is tax free in the form of a depletion allowance. An additional cost depletion allowance allows for 100% deduction of property lease costs, sales expenses, legal and administrative accounting expenses.
The return on investment on oil and gas can be financially lucrative for qualified investors, since it can outpace the performance of other conventional investment options. There is more to the story than the current price of oil and gas. The shift to infield, developmental drilling and improved technology have lowered the risk of investing and altered the dynamics. Smart, targeted investments in proven industries such as the energy market set the stage for success.
The United States Energy Information Administration expects the energy consumption worldwide to increase to about 50 percent by the year 2035, so now is a great time to diversify your investment portfolio by taking advantage of oil and gas investment opportunities.
The need for oil and gas production has been steadily increasing, with the growing consumer demand in the U.S., India, China, and other countries of the world. Retro Investment plays an essential role in bringing the energy sector and qualified and approved investors together and takes pride about its role in helping the country achieve energy independence.
If an investor incurred any losses, it can be offset against other forms of income like interests, capital gains, and wages. Yes, investing in oil and gas has great potential to deliver steady returns for many years.
Today, many investors are looking to abandon the investment mainstream and are searching for opportunities that will consistently deliver high returns. Oil and gas are precious resources that will never go out of massive demand. Retro Investment provides promising oil and gas investment opportunities in London, UK, to qualified investors looking to attain their investment objectives. We are experts at finding, developing, and managing the most lucrative oil and gas investment opportunities for qualified and approved investors. Our partner-first attitude has enabled us to deliver an exceptional customer experience for our investing partners. To find out more about our Texas oil and gas investment opportunities, contact us today