The
Energy Exchange is an association of engineers,
geoscientists, and financial professionals dedicated to providing a
bridge between the petroleum technical community and the financial
community. We are the petroleum industry's oldest oil and gas property
listing service -- its database describes hundreds of
available energy projects ranging from about $10 thousand to
$10 billion. The Exchange also established the petroleum
industry's first commercial website. Contact us
to learn more about how oil
and gas projects can reduce your taxes and increase
your Return on Investment. See our Featured
Products
Oil and Gas Projects Available
The
Energy Exchange has hundreds of oil
and gas
projects available for acquisition including exploratory
wells, developmental drilling prospects, producing
oil and gas wells, pipelines, refineries,
and LNG Projects. These energy projects are both
domestic and foreign. The Exchange links buyers
with sellers and collects a consulting
fee upon a successful transaction. This fee is typically based on the
Lehman Brothers Investment Banking Formula and it is paid by the seller.
HIGH FINANCIAL
REWARDS, i.e., several projects offer
Return of capital in 6 to 12 months.
Better than 10 to one Return on Investment Greater than 50% Annual Rate of
Return
RISK
Average wells are less risky than 10 years ago.
Several projects have a probability of success better than 90%.
Most projects would be economically attractive even if oil or gas
prices would fall 50%.
TAX BENEFITS
Drilling is the very best tax advantaged investment
(Newsweek).
Congress gives individual investors tax breaks that
are not available to large companies. 100% tax deductible ... 65 to 80% first year
write-off.
Up to 100% tax-free income.
Tax Free Exchange of Real
Estate for
Oil and Gas Producing Wells (IRS Sec. 1031)
Many
investors are unaware that they can sell real estate
properties and roll all the money forward into oil or gas producing
wells without paying any tax on the profits from the sale of
their real estate property. The IRS
considers real estate and producing oil and/or gas properties as “Like
Kind”. You can purchase either working interest or
royalty interest in oil and gas wells with
money that you otherwise would have paid in taxes. The
1031 Tax Free Exchange is one of the most valuable techniques
for preserving profits by deferring taxes, thereby
increasing the value of your investments. The Energy Exchange
has accounting and legal consultants that can explain how you can
accomplish a 1031 Tax Free Exchange. If
you have recently sold, or are about to sell a real estate property,
contact your tax advisor or Contact us to learn
more about how oil and gas projects can reduce your taxes and increase
the value of your portfolio.
Congressional
Incentives Encourage Domestic Petroleum Development
Oil and Natural gas from domestic reserves helps to make our country
more energy self-sufficient by reducing our dependence on foreign
imports. In light of this, Congress has provided tax incentives to
stimulate domestic natural gas and oil production financed by private
sources. Drilling projects offer many tax advantages and these benefits
greatly enhance the economics. These incentives are not "Loop
Holes" -- they were placed in the Tax Code by Congress to
make participation in oil and gas ventures one of the best
tax advantaged investments.
Intangible
Drilling Cost Tax Deduction The intangible expenditures of drilling (labor,
chemicals, mud, grease, etc.) are usually about (65 to 80%)
of the cost of a well. These expenditures are considered "Intangible
Drilling Cost (IDC)", which is 100% deductible during the
first year. For example, a $100,000 investment would yield
approximately $75,000 in tax deductions during the first year. These
deductions are available in the year the money was invested, even
if the well does not start drilling until March 31 of the year
following the contribution of capital. (See Section 263 of
the Tax Code.)
Tangible Drilling Cost Tax
Deduction
Active vs. Passive Income
Small Producers Tax Exemption
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