While oil and natural gas supplies decline, global demand for them is on the rise. The top ten oil-consuming countries devour over 50 million barrels of oil per day! Regardless of the rising popularity of alternative energy sources as a means to fuel our cars, oil cannot easily be replaced. Oil is used to manufacture virtually everything we use on a daily basis, from clothing to pharmaceuticals, from insulation to detergents. There are literally thousands upon thousands of petroleum-based products that are constantly in use in our contemporary lives. This remarkable consumption translates into enormous opportunity for savvy investors.
When investing in Beacon Energy Partners direct participation program for oil and natural gas, investors actually own a portion of a well, and receive a share of the production-generated cash flow, in the form of monthly disbursements. In addition to the income potential, oil and gas investments offer substantial tax benefits, designed by the federal government to encourage domestic drilling. Since the passage of the Tax Reform Act of 1986, Beacon Energy Partners direct participation programs in oil and gas are one of the few remaining investments that allow participants to shelter income. This makes Beacon Energy Partners direct participation program one of the most tax advantaged investments available today. Investors may be able to deduct as much as 65 to 100% of their investment in a drilling program within the first year, whether the well is successful or not— and 15% of the income generated in subsequent years is tax free.
Why invest in Beacon Energy Partners direct participation program for oil and gas?
1. STOCK MARKET DOLDRUMS
- Traditional investments have been disappointing for the last six years
- The Dow is up only 10% since 2000, and both the S & P 500 and the NASDAQ have been flat
- Oil and gas have gone up 380% since 2000—a bonanza for independent investors!
2. HIGH FINANCIAL REWARDS
- Return of capital in as little as 6 to 18 months
- Potential of better than 10 to 1 return on investment
- Greater than 50% annual rate of return possible
3. REDUCED RISK
- Emphasis of investment on producing oil and natural gas wells
- Average oil well is less risky now than 10 years ago due to industry advances
- Available projects would remain economically attractive– even if prices fell by 50%
4. TAX BENEFITS
- Drilling is the very best tax advantaged investment (Newsweek Magazine)
- Congress provides tax breaks to individual investors that arenot available to large companies
- 100% tax deductible—65 to 85% can be written off in the first year of the investment
- Tax deductions are available against ordinary income or capital gains
- Up to 100% tax free income
5. LESS COMPETITIVE MARKETPLACE
- The big money has gone offshore or overseas in search of the big oil fields
- The big companies left behind millions of barrels of oil for small and medium
- producers to extract
6. DEMAND/ CONSUMPTION
- Demand for petroleum is doubling about every 10 years, with China, India, and the United States driving demand
- U.S. oil stock piles are at a 27 year low, with only 14 days of consumption on
7. PRICE FORECASTS
- Long range projections are up
- Forecasters predict oil priced at $100/ barrel by the end of the decade
8. TECHNOLOGY
- Recent advances in oil-finding technology have improved recovery and reduced risk
- Some companies report 85% success on exploration wells and 95% on developmental wells