Ways Of Investing In Oil And IRA Oil Investments
A “How To” Snapshot!
Investing In Oil
Investing in oil and an oil drilling investment is what a growing number of investors are doing these days; however, most of them are unsure of what kind of oil and gas vehicle they should invest in. It all involves risk/reward and the management of that risk as most investments require.
There are several approaches for the Investor to benefit from investing in oil investments.
You can purchase stocks, bonds and options in investing in oil and gas companies listed on various stock exchanges. This approach is more dependent on the success of the business than the company’s specific exploration efforts which are where the value is.
There is also buying commodity contracts in oil and gas which is highly speculative and reserved for the more sophisticated risk takers.
There are limited partnerships in oil and gas well drilling projects where your success is again dependent on the success of the group and investors must be accredited to qualify.
There are Joint Venture investments in an oil and gas, where there can be found, lower risk offset development projects. This approach has many advantages and positions the participant more closely connected to the production that is the commodity that gives the value to all other forms of oil and gas investments. Investors must also be qualified as accredited high income individuals to invest.
With a Joint Venture you actually receive a Working Interest which is much the same as the mineral owners whom own such rights on the land the well or wells are drilled. The participant in the Joint Venture owns a direct percentage of the production and receives it directly minus the expenses and taxes on each well. You would also own a fractional share of all the equipment on the well and is not dependent on the success of an oil business. In fact, if the company or Operator that drilled the well goes away, a replacement Operator picks up where the old company left off. The Joint Venture is still bound to pay the original participants their fractional share of all production that comes from that well. This form of investing in oil and gas of course has its risk of failure, however, when success is found the return on investment (ROI) can be downright incredible. The Joint Venture is taxed as a General Partnership providing active loss write-offs of all Intangible Drilling Costs (IDC) in the year such costs and expenses are incurred. Fossil Oil Company, LLC continues to use the Joint Venture to fund and manage its oil and gas drilling opportunities.
Whichever way you choose to be involved in the energy sector, feel comfortable in knowing that Oil and Gas is a finite resource and we are using it faster than we are finding new reserves to replace it. It is truly a natural supply verses demand opportunity and the best investment to hedge against inflation.
Investing in oil can also be accomplished using a Self-Directed IRA.
IRA oil investments go through the same approval process as any other IRA investments.
Using your Self - Directed IRA to invest in Oil and Gas
Create a Fortune Investing in an Oil and Gas Investment with your Self-Directed IRA
You can invest in almost anything with a truly self-directed IRA, including direct participation in a Fossil Oil Joint Venture.
How It Works:
- Commit to Fossil’s Current Oil and Gas Joint Venture
- Open and Fund new IRA account
- Contribute to the account by rollover/transfer funds from existing IRA
- Complete and Submit the General Direction of Investment (DOI) Form to your trust company.
- Send supporting documentation for Fossil’s Joint Venture Agreement
- Sign documentation and insure proper titling before sending
- Investment Funds are sent to Fossil by your trust company
To learn more about the benefits of owning oil & gas reserves and to receive a free "Come Drill A Well In My Backyard" book, please fill out the form below!
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The public portion of this site contains only general information regarding classes of products and services that are designed to meet the needs of qualified investors. This is not an offer to sell or solicitation of an offer to buy any security listed herein. Such offer may only be made by written memorandum in a jurisdiction where the offering is duly registered or exempt there from. Please see our investor protection page or download our due diligence, which outlines important information from the US securities and exchange commission (SEC) on recognizing and avoiding oil and gas investment scams. For the complete publication see www.sec.gov/investor/pubs/oilgasscams.htm. Prospective investors should be cautioned that prior performance may not be indicative of future results in any investment, and there can be no prediction as to the future production, if any, of any well to be drilled. Energy investments are speculative and involve a high degree of risk. Oil and natural gas wells are naturally depleting assets. Cash flows and returns may vary and are not guaranteed. Past performance is no indication of future performance. Nothing herein shall be construed as tax or accounting advice. Investors may lose money.