An investment in Oil and Gas will not only make you money in the future, it provides you with valuable tax benefits in the short term that are quite appealing for both seasoned and first-time investors. While these benefits are available to all those who invest, it’s a good idea to consult with an accountant to be sure you receive the full benefits of your investment.

Intangible Drilling Costs (IDC)- IDC is defined as the intangible costs involved in drilling a well, except the drilling equipment. These costs include labor, mud, grease, supplies, and anything else utilized during the process. These costs are generally estimated at 60%-80% of all the expenses involved in the well drilling, and they are 100% deductible in the year incurred. These deductions are applicable whether the well is productive or not.

Lease Costs- Any costs incurred for the purchase of leases and mineral rights, operational costs and administrative costs are all fully tax deductible in the year incurred.

Domestic Production Activity Deduction (DPD)- DPD is a deduction under Section 199 of the Internal Revenue Code that applies to domestic production organizations such as manufacturing, construction, and oil and gas. Receipts from the lease, rental, license, sale or exchange of qualified products can be partially deducted from the year incurred.

Tangible Drilling Costs- Tangible Drilling Costs are the hard costs for the actual drilling equipment used during the drilling process. These costs are fully deductible, and equipment placed in service before January 1, 2013 is eligible for 100% bonus depreciation.

These are just some of the many tax benefits available to oil and gas investors. As tax law can change, it is imperative that you have a good working relationship with an accountant that is familiar with oil and gas investing and tax law. Other tax benefits include Completion Costs, Depletion Allowance, Intangible Completion Costs and others.

Learn more about tax benefits in oil and gas investing. Call PetroChase at 888-207-3876 or email us info@petrochase.com.

Oil is at record highs, and while that might mean a lot of moaning and groaning at the gas pump, it can also be a cause for excitement for those that have invested wisely in oil and gas. People are making money from their investments, and it isn’t just the CEOs of big oil companies that are cashing in. If you’re interested in making an investment in oil and gas, be sure to know about the risks and options before you move forward with an investment.

Due Diligence

As with any investment, you need to make sure you do your due diligence so that you make the best, well informed decision possible. Reading about oil and gas investing, or talking with others who have made an investment is a good place to start, but it shouldn’t stop there. Proper due diligence is imperative to a successful investment. Due diligence includes reading the investment’s prospectus, but it also means researching the company, analyzing past returns, understanding the terms of your investment, and analyzing the future potential of the investment.

Know the risk and Define what you’re willing to Tolerate

All investments carry some degree of risk and uncertainty, some more than others. Each person should choose their investment based on their risk tolerance, which is dictated by his or her age, financial situation, current investments, and personal preferences. A young person just starting out in investing may take more liberties when it comes to risk as they aren’t worried about retirement right away and most likely have a steady income. An older investor may have more experience in investing, but will most likely take greater care as they have a lower tolerance for risk.

Know your Options

The oil and gas industry is huge, and there are several ways one can make an investment. Some of these options include buying in to an oil well, buying oil futures, investing in an oil royalty trust, investing in a commodity exchange-traded fund, buying stock in Big Oil, buying stock in companies that transport the oil, buy stock in an alternative energy company.  Once can see why oil and gas is such a popular investment, as profits manifest from various facets of the industry.

Diversify your Portfolio

An oil and gas investment should be one of several investments in your portfolio. Have a well diversified portfolio is the best way to protect your money and yourself from the uncertainties of the market. The old adage still rings true today: Don’t put all your eggs in one basket.

PetroChase is an independent oil and gas investing company participating in the exploration and acquisition of oil with various projects ongoing and upcoming. Call 888-207-7836 for more information.

If you’ve been considering investing in the oil and gas industry, you’ve most likely come across the many different avenues for investment. You could buy an oil well, buy stock in oil transport companies, or lease land. While buying an oil well or leasing land sounds like a profitable way to invest, it isn’t realistic for most investors. Typical investors turn to Oil ETFs, or Oil Commodity Exchange Traded Funds.

Oil ETFs allow individuals to disclose their investment to the price and performance of oil without actually owning any oil itself. Oil ETFs typically consist of oil company stock or futures and derivative contracts in order to track oil prices.

Oil ETFs are popular among investors because they are simple to trade. When investing with an Oil ETF, you make one purchase at one price and save on commissions. It is a bundled investment, saving you time, money and giving you instant exposure.

There are some disadvantages to Oil ETFs, the largest being International Limitations. The US has a large amount of ETF products available, but some countries only have a few funds in which to invest.

ETFs have satisfactory tax advantages, making them much more attractive over other investments like mutual funds. Capital gains taxes aren’t incurred until the sale of the fund. If you’re a first time investor, or are simply looking to diversify your portfolio, Oil ETFs can really work to your advantage. Before you jump in and make an investment, it is always wise to do your research first. Track the performance of the oil, and watch how Oil ETFs react to changing market conditions.

Lastly, always invest with a company that you trust, and be sure to do your research and due diligence on the company’s track record, history with past investors, and standings of compliance with government agencies.

PetroChase is an independent oil and gas investing company participating in the exploration and acquisition of oil with various projects ongoing and upcoming. Call 888-207-7836 for more information.

You have most likely heard of the Marcellus Shale, the unit of sedimentary rock that extends throughout the Appalachian Basin. The Marcellus Shale contains untapped natural gas reserves, and it is an extremely attractive target for energy development due to its proximity to the high-demand markets along the East Coast of the United States. Below the Marcellus Shale lies the mostly untapped Utica Shale.

The Utica Shale is located a few thousand feet under Marcellus, and it is poised to become a massive natural gas resource. Why? It is thicker than the Marcellus, it’s more extensive geographically, and it has already proven its ability to yield large amount of natural gas liquids and crude oil.

Massive and extensive, it is impossible to say just how large the Utica Shale actually is. In the United States, it underlies portions of Kentucky, Maryland, New York, Ohio, Pennsylvania, Tennessee, West Virginia and Virginia. It is also present beneath parts of Lake Erie, Lake Ontario, and part of Ontario, Canada. The thickness of the shale ranges from less than 100 feet to over 500 feet. While thickness of the rock is important, the organic content and presence of gas is what determines the true value and potential of the shale.

During 2011 and 2012, natural gas companies spent billions of dollars acquiring Utica Shale acreage in Ohio. Why? The Ohio Department of Natural Resources estimates between 1.3 and 5.5 billion barrels of oil between 3.8 and 15.7 trillion feet of natural gas. It is easy to see why the Utica Shale is posited to become a powerhouse.

While the Utica Shale has proven it’s potential, there are challenges for the development of the Utica Shale. First, there is a lack of information on the Shale. Secondly, its depth is significant. Although there are challenges, in areas where the Marcellus Shale have been developed, Utica will have an infrastructure advantage.

The future of the Utica Shale is poised for greatness, but more time and research must be spent exploring and developing this vast shale below Marcellus.

For more information about the Utica Shale, please contact PetroChase at 888-207-3876

High oil prices have created a magnified interest in energy related investments and business ventures. While most oil and gas investment opportunities are legitimate, it is not uncommon for con artists to swoop in and attempt to take advantage of potential investors by engaging in fraudulent practices. Protect yourself from scammers and swindlers by doing your homework!

Fake oil and gas deals are typically structured with a limited partnership in one state, the operation of the field in another state, and the offerings to potential investors in states other than where the limited partnership is registered and operation takes place. Why all the various locations? Scammers use different areas to lessen the chance of an investor dropping by a well site or nonexistent company headquarters. Additionally, this type of structure makes it difficult for victims and the law to identify scammers and proceed with legal action.

If you’ve ever received unsolicited phone calls or e-mail messages about making an oil and gas investment, or been told “you have access to a private deal open to only a few, lucky investors”, you’re most likely being swindled. Oil and gas fraud typically manifests in the form of a high-pressure sales pitch. If you’ve been solicited and told “risks are minimal”, “there’s been a new discovery in a nearby field”, or the salesperson tells you that they have personally invested, beware. They are most likely involved in fraudulent oil and gas activities.

When it comes to protecting yourself and your money, don’t be afraid to ask the hard questions and consider investing in companies that are well established, have a good track history, or are listed on the NYSE. Do as much research on the company as possible, finding out their history in drilling operations, how long they’ve been in the business, and if their current investors are satisfied. Once you decide to invest, be sure your funds are kept in a separate escrow account until used and that they won’t be mingled with other funds. Document what your funds will be used for, and be sure that you are advised of sales commissions and any other applicable fees.

Call 888 207 3876 to find out more.

The investment in oil & gas industry begins with the investors figuring out what stocks they should invest into. Some investors focus on stocks which give higher return on investment such as Canadian oil stocks and oil sands stocks. Below mentioned are some of the key factors which must be kept in mind while making an investment:

Trust Unit Vs Common Share

A significant amount of oil & gas stocks have transformed into trust units. The major purpose of these stocks getting converted into trust units is to save and reschedule tax to the unit holders. The distributions which these trust units pay out need some amount of cash flow and they minimize the growth capability of a specific oil stock.

This is why if you want a stock that can provide you a steadier cash flow than an oil stock, trust unit is the best solution.  However, if you want to keep an oil stock which has higher growth potential, trust unit may not be the right option. Oil & gas capital programs are mineral rights, purchasing land, and drilling programs.

Overvalued oil stock

This is the major concern of many oil & gas investors. Sometimes, oil stocks are more hyped than their actual value. An oil stock’s value can be determined with that stock’s price earnings. If it is more than 20, it is recommended to further research why the value is so high.

If it is because of an aggressive growth strategy such as a large drilling program or a recent land acquisition, you must figure out the impact which these events would have on earnings in oil stocks.

Oil versus Natural Gas

Investors must know that how much of their money is invested in oil, and how much is in natural gas. Let’s say you are purchasing stock of a natural gas focused oil & gas investments company and the natural gas price is going high, then it is not a wise decision to buy.

On the other hand, it is a favorable time to sell stock depending upon experts’ prediction about the price of natural gas in coming time. This holds true for oil stocks as well. However, the price of oil can hardly see any significant reduction whereas natural gas price can easily be reduced by 50% in a year.

Assessing above mentioned factors, the final decision depends upon you on how you want to approach oil investing. You must research a lot, and take expert’s suggestions for better investing opportunities with oil drilling companies. Petrochase is an independent oil and gas investing firm which has some exciting projects ongoing and getting started. This includes Eagle Ford Shale along with Marcellus Shale.

Call (888) 207-3876 for more information.

Drilling of an oil well requires a great amount of work from a team of professionals. In order to carry out oil well drilling, various distinct steps must be complete. A few of them include initial research and oil discovery, legal formalities, environmental and social responsibilities, setting up of rigs and oil extraction at the final stage.

First, the location of oil is determined by oil exploration companies. In order to carry out this task, geologists look for sites where soil and rock conditions suggest the presence of possible oil fields.

These days, satellite imagery can help researchers study terrains. Some modern technologies help evaluate anomalies in the magnetic and gravitation field of earth which might be an indicative of oil deposits. Oil pools can also be detected using several seismological tools which are used to send shock waves via rock layers.

Legal formalities are dealt with once the location of oil is found. The oil and gas drilling companies have to work within the limitations of laws in the jurisdictions in which the location exists. Organizations are required to research and reduce the possible negative environmental and social effects of drilling of oil wells.

Trees on that location are cleared, and the land is leveled when preparations of oil well drilling are done. A reserve pit is created to keep natural debris. Man-made garbage is generally removed from these sites. Natural waste is transported from drilling site to another location as it can cause environmental damage to the location and surroundings.

Sometimes access roads are also made if the location is very far and even air or waterways can be built if required. All these preparations may take a few weeks and even months. A team of engineers and labor works on the site day & night to complete the tasks at the earliest. Once all these preparations and ground work is over, the team digs a hole and puts machinery around drilling hole at the planned location.

The workspace where drilling of oil is carried out is also known as cellar. The core drilling hole is created and other holes are dug in its surroundings for storage purposes. At the final stage, a rig is set up and profound drilling begins. A casing pipe is installed in the drilling rig. This is followed by cementing to create firm walls. Once the drilling process is over, the rig is taken out and pumping system is installed to extract the oil from earth’s crust.

Petrochase is an oil and gas investments firm specializing in the acquisition and development of projects designed to attempt to bring a significant ROI to oil and gas investors. If you would like to learn more about how to invest in oil and gas, call Petrochase today at 888 207 3876.

It is an no secret that all the industrial and technological revolution we are enjoying in today’s economy is the outcome of the oil and gas discovery. The traditional techniques used by oil drilling companies in harvesting these essential fuels is working fine so far, but many researchers are trying to find newer ways.

Laser technology has proven to be helpful in many fields, and oil and gas research is one of them. Though the old techniques work quite well, addition of laser to oil drilling makes things more efficient and help with a greater ROI for oil and gas investment firms.

Contemporary analysts are working day and night to develop a commercially high tech drilling mechanism for better results. Oil exploration companies are focusing on oil drilling at the moment and aim to apply the same logic on the gas industry if things work out well with oil drilling.

If the on-going study proves to be feasible for drilling methods, it will be a historical change in gas and oil drilling industry of this century. In the recent times, rotary drilling followed by a cable instrument is in practice for the excavation of petroleum to get hold of gas and oil formations as a standard method.

Even if a number of improvements have taken place in the oil and gas drilling methodology, the basic concept has remained the same. However, this won’t be the case if laser drilling could be implemented successfully. Laser will be the primary tool that will get in touch with the surface of the earth to drill into the ground.

Afterwards, a fiber optic bundle will pass through the hole with the help of a chain. They also use a lens to give it the right direction. We will have no more heavy drilling machines, not much physical effort, and no more noise pollution. So laser would be a revolution in the field of oil and gas drilling industry.

In fact, one of the greatest advantages of laser drilling is that it is less time consuming. Investigators believe that modern laser beam has the potential to breach the rock layer considerably faster in comparison to conventional boring machines.

As a result, the lesser the time used, the greater the money can be banked by oil and gas investing companies. Additionally, it is difficult to dig out unique gas and oil ingredients locally because of solid rocks. In turn, enormous money has to be spent on outsourcing. This dilemma could also be managed with the convenient laser drilling technique and that too within the desired time.

If you are interested in oil and gas investments, contact Petrochase today at 888 207 3876. They are a leader in independent oil and gas project development.

With the rising demand for oil and gas, a number of countries have needed to establish new gas production projects so that these demands can be met while keeping gas prices low enough concurrently. For instance, Africa has ramped up its oil and gas production to become a significantly stronger contender in the industry and also to help me the continent’s needs.

Another country that has ramped up its production efforts is Australia with oil drilling. With the concerns in Australia about increasing energy demand growing every day businesses and consumers in Australia have increased their gas consumption considerably. Therefore Australia has started to develop the oil and gas production sector of business dramatically.

As organic and inorganic substances decay, gas is produced. There are 2 categories of gas fossil fuels, and they are natural gas and biogas. The energy produced from this gas supports aviation, automobiles, the industries including fertilizers, and generating power.

Chevron Corporation, a leading energy gas player, has disclosed its future plans for meeting the raised demands of energy. The company is planning to implement innovative ideas to produce gas and invest big in various projects in Australia. Their major aim is to aid the new natural gas sources discovery. It makes for a great time for investing in oil and gas.

Several of these new projects are related to the Barrow Island oilfields along with Wheatstone projects, Gorgon, and Thevenard island. Increased global gas production can be seen if new discoveries can be made in these locations.

The recent accomplishments in this industry are greatly attributed to Angola’s projects in the field of gas production, especially in LNG sector. The project is still in its beginning phases and includes the making of a production plant about 350 km north of Luanda. this plan may be able to produce over 5,000,000 tons annually of gas.

The Gulf of Suez petroleum company is undertaking the Tuart production project in Egypt. This began a few years ago in 2008 and has been one of the countries most successful development projects under the sea.

Ever since the project has started, it has been considered as a big milestone in gas industry. While discussing about production of gas in the numerous regions worldwide, the costs associated with planting these operation and production must not be ignored.

Significant amount depends upon gas prices. Statistics show that lower gas prices may end up causing increased demand with more pressure being placed globally on gas production companies. This has facilitated oil and gas investing firm projects.

Shelter, clothing, and food are considered  the basic living necessities. With the increase in industrial activity and associated machineries over the past 2 centuries, petroleum and the products it generates have now become essential for human existence. Human dependence on the oil and gas industry is so vital that without petroleum products, we may return to the Stone Ages very quickly unless alternatives come about.

We Need Oil

Aside from petrol and diesel (used in autos) and gas (for cooking) which are immensely popular, petroleum makes up the raw material for quite a few pharmaceutical and chemical products, fertilizers, and much more. Petroleum usage has a history of over 5000 years though it has not always been in a refined form. The current situation is that over sixty percent of our energy requirements are fulfilled by oil and gas. The rest of the forty percent comes from other sources like wind, sun, coal, and water. Due to these numbers, oil exploration companies are often thriving due to the demand being seen.

Basically every aspect of the global economy relies on the oil and gas industry, it just varies as to what extent. Therefore it is concerning when petroleum products like gas, petrol, and diesel can be so combustible,  releasing carbonic, sulfuric,  and nitric acid to the surrounding atmosphere, which is a very dangerous thing to the environment.

Oil Well

Oil is a natural product found in the crust of the earth, which has to be extracted by oil drilling companies and processed to make it into various products. Crude oil is extracted using a drilling rig with holes being made anywhere from five to fifty inches using a pressure technique. Refineries then process the oil further, and as the yield from the drilling goes down enough, the well is abandoned. At times hydraulic fracking techniques can be utilized to increase extraction rates.

It is vital to understand the origin of petroleum, since pretty much every aspect of modern life has become dependent on its products. It is a fossil fuel that is generated by the remains of dead animals and other organisms which takes many years beneath the earth’s surface.

The pollutants generated from the oil refineries are significantly harmful to the atmosphere. One of the effects of oil extraction,using these fuels, and byproduct pollution from refineries is global warming.

Petroleum is a natural resource, not an artificial one, so there is a limited supply. It needs to be used carefully so it will last longer or at least until alternative sources are located that can replace petroleum. This could end up being nuclear in some way, solar, or electricity.

PetroChase is an independent oil and gas firm assisting in the acquisition, development, and exploration in the US.

Oil and gas investor opportunities offer financial returns which may be excellent along with unique tax benefits to accredited investors, and PetroChase is at the forefront of project development.