WHY SHOULD YOU INVEST IN OIL & GAS JOINT VENTURES?
The U.S. imports over 60% of its oil from foreign sources compared to 40% in 1985. Demand for oil and gas is rising worldwide at about 2.5 to 7% per year, while supply has declined annually. The world supply will be one million barrels short daily by 2013 pushing prices likely to $100-$120.00 a barrel. Virtually all the 300 major oil fields of the world are watering out meaning they can no longer provide increasing consumer demand from countries like China, Indonesia, the United States and other countries. We consume 80 million barrels of oil per day and we will need between 100 and 115 million barrels of oil per day by 2015 if not sooner. There is no way the world’s nations can meet rising demand. Therefore prices will have to raise substantially meaning wealth for those who own reserves of oil in the ground.
There are no known alternative energy sources that can compete with oil and natural gas due to the energy output of a hydrocarbon and the laws of thermodynamics with respect to fuel cells and hydrogen. Oil and natural gas will be the fuel of choice for the next fifty years even though every known alternative energy method will be needed. Based on analysis by experts all alternative systems could account for only 40% of our energy needs for the next fifty years.
WOULDN’T I DO BETTER BUYING EXXON OR SHELL COMMON STOCK?
All wealth for companies or individuals is made at the well head. Those who typically become rich are those who own oil interests in a good economic producing oil and gas field.
The smaller independent oil companies find over 65% of all new oil wells, not the major oil companies. The majors left behind thousands of smaller oil fields which, are now becoming valuable as shortages loom until the new giant oil fields are found. There will be an 8-10 year window of opportunity to create great wealth through direct participation programs.
WHAT ARE THE TAX ADVANTAGES?
The United States Government offers 100% tax write offs for what is called intangible drilling costs (IDC). In other words, investors who pay for the drilling of a well in the year of the investment will be able to write off 65-75% of the investment regardless of the outcome of the well.
Fossil Oil Company has an exciting 3-D based oil well investment JV along the Texas Upper Gulf Coast. For more information about our current project click HERE