Viper Capital Partners is a capital formation entity created specifically for the purpose of aggregating and connecting accredited private investors and institutional investors with quality Oil & Gas Opportunities and Operators. As one of the leading oil & gas investment companies in Texas, our team currently evaluates Oil & Gas projects from seasoned operators in the lower 48 States and Canada. Each project is selected through a process that focuses on and looks for ROI as well as certain niche plays other firms might overlook while following the herd mentality of the energy business. Viper Capital Partners relies on its internal team with over 50 years of Oil & Gas experience to select solid and worthwhile opportunities for capital formation and participation.
The best time to invest in oil companies is when oil supplies nearly match the demand for oil.
It is important to partner with an established and reputable oil exploration and investment company, such as Viper Capital Partners, because the oil industry is volatile and complex.
Oil will continue to provide the bulk of the world’s energy needs into 2050 and the United States along with its oil producers and partners will lead the way in meeting this demand.
What are the Tax Deductions for Oil Investments?
Oil investors receive an allocation of Intangible Drilling Costs (IDC), which includes everything except the actual drilling equipment. These expenses are deductible in the year incurred. Oil Investors can deduct tangible drilling costs, those costs directly related to the cost of the drilling equipment, as long as they are depreciated over seven years.
Is a Royalty Interest or Working Interest Better?
A royalty interest means you lease rather than sell your mineral rights to the land. You don’t have any control over the drilling or exploration process, but you also won’t have to worry about any liability or maintaining equipment. A working interest has a greater chance for financial gain than a royalty interest. Investing in wells currently in production is safer than exploratory drilling.
There is a strong global need for oil. When investing, it is important to work with a company with long-term patterns of security. Don’t look for quick trends in the market, but instead work with a company that has proven to always come out on top.
The most common ways to invest in oil include mutual funds and ETFs, stock and ADRs, futures contracts, and micro-cap stocks. While the most common types of oil investments include exploration, developing, income, and services. The financial advantages of oil investing include diversification, profit potential and tax breaks.
Tax advantages include deductions for tangible drilling costs, intangible drilling costs, lease costs, and depletion allowance for small producers are just a few examples. The upside of an oil investment is that it can last for many years as the oil well produces.