Frequently Asked Questions
General
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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 multiple 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.
Oil and Gas Investing
Approximately 30 to 90 days from the drilling date. It's crucial to invest with an oil company that owns and operates its own rigs as there will be no additional draw on corporate revenue (i.e., down time, waiting periods, and costly "term" leases and rentals of various rigs and drilling equipment).
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 (See Section 263 of the Tax Code.)
Oil prices are back to normal, in fact it is more advantages to invest during a "correction" rather than a "boom" as operating costs are lower and property leases are less expensive. $150 dollar oil not only caused problems for the economy but the oil industry as well (i.e., higher operating cost, employee cost, and property lease cost – all of which is passed along to the investor). Most respected oil men like T. Boon Pickens made their fortunes when oil prices where between $15.00-$25 dollars a barrel.
Well logs can give you a good idea on how much oil is available for production; however there is no way to get an exact figure as to how long an oil well will produce. The best way to estimate "oil reserves" is to research existing projects in the surrounding areas with similar formations. Most experienced oil men can tell by utilizing 3D seismic technology to see if a well is worth drilling.
Experienced investors buy during a "market correction", the same is true for Oil & Gas. Smart oil men drill when it's inexpensive to do so. If a well (or series of wells) is already producing when oil prices begin to rise again an investors unit (or units) of ownership will increase their revenue/cash flow.
If you have made $200,000 in the past 2 years and expect to make the same in the following year or you have a total net worth of 1 million dollars or more, you are considered accredited. Most reputable oil companies only accept accredited investors but have the option to allow un-accredited.
Every project is different with widely differing probabilities of success; however, generally the following average probabilities apply:
Project Listings
The project listings are energy investment opportunities for accredited investors. If you think you may be interested in funding a project, please contact us and we will introduce you to the company that is offering that particular project. You will not purchase any projects directly from the Energy Exchange -- you will purchase them directly from the company offering that particular project. The company pays us for screening potential participants to determine if they meet certain minimum requirements to participate in their ventures. Energy Exchange Associates are also available to answer general questions regarding the petroleum industry and provide an overview of the particular project. All facts and figures regarding any project come directly from the company offering that project and that company is totally responsible for that information.
Call or email us.
Please register and go to the home page for available projects.
- Register as a user.
- Submit a project.
- Pay to publish it.
*The electronic project submission features are currently hidden and in beta test mode. To list a project with us, please contact us.
Registration
Contact our Technical Support for help with registration and login difficulties.
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