Investing in Oil Drilling Operations

Why Consider Investing in Oil & Gas

Tax Incentives

Tax rules designed to encourage oil and gas production can make direct investment in oil and gas properties, rather than in marketable securities of oil and gas companies, an attractive option for many investors. Federal and state governments offer various tax deductions and credits to encourage investment in domestic energy production.

Portfolio Diversification

For investors looking for diversification, oil and gas offers a lucrative opportunity. With a variety of investment options, from traditional stocks to working partnerships, there’s a range of choice for an investor’s portfolio.

High ROI Potential

Oil and gas projects have the potential to yield high returns on investment that may exceed those historically achieved through traditional equity investments.

Tax Benefits for Investors

Investing in oil and gas can come with significant tax incentives provided by deductions and credits that have the potential to enhance investor returns.

Intangible drilling cost deductions (IDCs)

Section 263(c) of the tax code allows intangible drilling costs to be deducted from current year taxable income.

Tangible drilling cost deductions (TDCs)

Expenses associated with durable equipment and machinery can be depreciated over a seven-year period, leading to additional tax deductions.

Depletion allowance deductions

Acknowledges that an oil well's production gradually reduces over time. This allowance lets investors deduct a certain percentage of the income derived from the sale of the oil.

Percentage and excess depletion deductions

In the US, a smaller oil or gas company can qualify for a percentage depletion of 15% on the first 1000 barrels of daily production.

Additional potential tax credits

There are the potential for tax credits if an oil well provides marginal or low-output. These credits can help offset any loss due to the maintenance of these less productive wells.

Oil Quality & Location Benefits

Gulf Coast Basin
The Gulf Coast Basis is one of the largest oil producing regions in the US. The region is known to produce light, sweet crude oil, which is highly sought after for its low sulfur content and ease of refining.
The Gulf Coast region provides some of the most promising opportunities for oil exploration and production in the United States.
Stanley King
Stanley King
Geologist at White River Energy Corp.

The Future of Oil Use and its Implications

The global economy continues to be heavily reliant on oil, and this trend is projected to continue well into the future. With increasing demand from growing economies and industries, the pressure on oil production and prices is likely to persist.

These are just a few examples, but they illustrate the pervasiveness of oil in our everyday lives and the importance of understanding the impact of its production and consumption.

Plastics & Synthetic Materials

Oil and gas serve as key raw materials in the production of plastics, playing a crucial role in shaping the modern world through their contribution to diverse applications and industries.

Transportation Fuels

Oil and gas are essential for fueling transportation, industries, and generating electricity worldwide.

Cosmetic & Personal Care Products

Oil and gas play a significant role in the manufacturing of cosmetics and personal care products, contributing to their formulation, texture, and overall performance.

Pharmaceuticals & Medical

Oil and gas are utilized in the production of pharmaceuticals and medical equipment, contributing to advancements in healthcare and improving patient outcomes.

Clothing & Textiles

Oil and gas are instrumental in the textile industry, providing raw materials for synthetic fibers, dyes, and finishes that are used in the production of clothing and textiles.

White River

Our Operating partner
White River Energy Corp (OTCQB: WTRV) is a growth focused energy company targeting opportunities in the Gulf Coast Basin. The company’s primary focus is on the exploration and further development of proven fields which mitigates risk and offers the potential for significant growth. White River’s current business model involves accumulating production by re-completing and restoring existing wells. With vast experience and expertise in the energy sector, they are proud to operate on over 34,000 cumulative acres of active oil and gas mineral leases.

Gulf Coast Basin

With its immense estimated oil and gas reserves, the Gulf Coast Basin presents significant opportunities for future production. Our geologists have over 70 years of combined expertise studying and extracting production from a region that is famous for its highly pressurized reservoirs and complex geological structures. 

Inside White River

01.
Vertically-Integrated Drilling Operator
White River is directly involved in multiple stages of the exploration and extraction process of oil and gas. Being vertically integrated offers the potential for increased profits through cost savings from operating efficiencies and greater market control.
02.
Significant Tax Benefits
Eligible investors may be able to reduce their current year tax bill, plus earn additional tax breaks on future oil and gas income distributions.
03.
Risk Mitigation
Balanced risk from a portfolio that includes investments in proven wells alongside new drilling opportunities that present high production potential.
acres of active leases
0 K
Active Drills
0
Operating Years
0
Extracted Barrels
+ 0 K
Scroll to Top