* 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 well is less risky than 10 years ago. Several projects have a probability of success better than 90%.. 
Available projects would be economically attractive if oil price would fall 50%. 

* DRILLING PROSPECT AVAILABILITY

Small drilling prospects are better than ever (and there are more of them).

* TAX BENEFITS (View more information)

Drilling is the very best tax advantaged investment (Newsweek). 
Congress gives tax breaks to individual investors that are not available to large companies. 
100% tax deductible ... 65 to 80% can be written off in first year. 
Up to 100% tax-free income.

* COMPETITION

The big money has gone offshore and overseas, because there are too few easy-to-find big oil fields remaining. 
Over 10,000 oil companies have left the arena since 1982.

* LEASE COSTS

Oil companies are not as anxious to renew expired leases (so lease costs are low).

* DEMAND/CONSUMPTION (View more information)

Petroleum demand is doubling about every 10 years. 
U.S. oil stock piles are at 27 year low. (14 days of domestic consumption) 
View Oil Demand/Consumption Graphs

* OIL PRODUCTION TREND
US output is at a 35 year low 
Over two-thirds of domestic oil wells are classified as marginal (avg = 3 bbls/day). 
Imports are now over 60% (imports were 30% just before the oil embargo).

* PRICE FORECASTS

Long range projections are up.

View Oil and Gas Price Graphs

* DRILLING COSTS

Rig activity is lowest in 50 years, therefore, drilling costs are low.

* TECHNOLOGY

Recent advances in oil finding technology has improved recovery and reduced risk. 
Some companies report 85% success on wildcat wells.

* ENVIRONMENT

Sierra Club endorses natural gas 
Combustion by-products are carbon-dioxide and water.

* GOVERNMENT

Encourages domestic drilling with special tax breaks. 
Mandating natural gas usage over oil and coal. 
Natural gas is now deregulated.

* MONEY CRUNCH

Traditional sources of drilling money are no longer available (which is a bonanza for independent investors).