_[CLASSROOM] Oil and Natural Gas partnerships Oil and Nat Gas exploration
the last real Tax Deduction available in the tax code. The gov’t allows
these tax deductions because we need to become less dependent on foreign oil.
Most public programs will give you between 80% and 100% tax deduction.
These deductions are based on your deposit.
The reason is because you investyour money into wells, meaning spend your principle
and drill wells for oil or gas.
Then the wells produce tax preferred income (taxes on income are reduced
by Depletion) to those that own the well. You have to hit oil or gas to get
paid, but all the drilling are in areas they KNOW that gas or oil exists.
Every well produces X amount of gas, some are gushers some are trickles.
Depletion is just like depreciation, but one is for natural resources and
the other is for real estate.
Income in these programs normally pays out for
up to 30 years. Income can start as high as 20% and after 5 years it will
reduce to about 5-7%.
These are round numbers from my experience. I think this
might be a shorter classroom that normal.
Read More Link on Right
_ [wisewarrior] if the boone pickens plan finally gets attention, which are the best investments?
[CLASSROOM] BRIEFLY WHAT IS HIS PLAN
[CLASSROOM] MORE DRILLING?
[wisewarrior] NAT GAS
[CLASSROOM] NAT GAS IS A LOSER RIGHT NOW. GAS AT 2.5 IS BELOW THE COST TO BRING IT UP.
[CLASSROOM] THERE IS SOMETHING CALL FRACKING THAT SHAKES THE GROUND AND THEY GET MORE GAS OUT OF EXISTING WELLS. WILL CUT BACK ON DRILLING AND PRICE WILL GO UP AGAIN.
[wisewarrior] boone pickens plan is to convert trannys to natty gas.
[CLASSROOM] THAT WOULD BE GOOD REALLY. CUT BACK DEPENDENCE ON OIL AND GASOLINE
[CLASSROOM] NEED ALL NEW INFRA STRUCTURE THO
[CLASSROOM] AND PRICE OF NAT GAS WILL GO UP
[CLASSROOM] MORE PROGRAMS ARE DRILLING FOR OIL RIGHT NOW ... GOOD TIME TO BUY GAS LEASES IF YOU ARE A DRILLER OR EXPLORATION COMPANY
[broadriver] What are the opportunities in this area? Is the Bakken oil fields
still a sound investment?
[CLASSROOM] I DEAL WITH COMPANIES THAT PICK THE LOCATIONS TO DRILL ...
NOT SURE WHERE THAT IS
[CLASSROOM] THE BIGGEST ADVANTAGE OF A WELL DRILLING PROGRAM IS THE TAX
DEDUCTIONS AND DEPLETION ALLOWANCE ON INCOME
[CLASSROOM] ITS CURRENTLY 15% OF INCOME IS TAX FREE
[tammy] ipad...r these figures and info just for us citizens?
[CLASSROOM] YES THEY ARE US FIGURES
[CLASSROOM] US TAXPAYERS
[eleanor] are you going to teach us how to drill for oil or invest in it?
[CLASSROOM] INVEST IN IT. ADVANTAGES OF INVESTING IN IT
[CLASSROOM] I HAVE BEEN ON A RIG AND GOT DIRTY ..
[CLASSROOM] THAT WAS GOOD ENOUGH FOR ME
[libbythelab] What limited partnerships do you like??
[CLASSROOM] ONES WITH LOW EXPENSES .. AND ACTUAL COST FOR DRILLING WELLS
IF YOU TRUST YOUR OPERATOR
[CLASSROOM] YOU CAN GET MORE WELLS DOWN IN THIS ENVORIONMENT ( LOW NAT GAS PRICES) BECAUSE LESS PEOPLE ARE DRILLING
[Gandalf] Having been invested for some years, unless you have lots of
money to give away it is a mugs game
[CLASSROOM] YOU HAVE TO HAVE A GOOD OPERATOR.
[CLASSROOM] SOME HAVE STOPED PAYING BECAUSE EXPENSES WERE GREATER THAN REVENUE ... NATGAS IS LOW ... BUT YOU DON'T SEE UTILITIY COMPANIES DECREASING OUR RATES ...
[CLASSROOM] DIVINDEND SHOULD BE GOOD FOR UTILITY STOCKS
[EagleResearcher] how does one get started in this type of venture?
[CLASSROOM] WITH A GOOD ADVISOR THAT HAS A GOOD PRODUCT. THE LARGE
WIREHOUSES AAND BANKS HAVE THERE OWN PROGRAMS .. BUT I WOULD STAY AWAY
FROM THEM, THEY TEND TO LOAD UP THE FEES. (WELL DID IN THE PAST)
[shar35] Please explain what an investment in an Oil and Natural Gas
Partnership looks like. Do you purchase partnership units vs. shares?
Is it specific to a particular project/well? Does the income depend on the
life and production of the given well?
[CLASSROOM] OK SHAR .... YOU BUY IN UNITS ... DEPENDING ON THE PROGRAM
YOU WILL HAVE 10 TO 40 WELLS . (THE ONES I HAVE SEEN) AND INCOME WILL START
AFTER THE WELLS ARE DRILLED AND GAS IS SOLD.
[CLASSROOM] IT NORMALLY TAKES 6 TO 12 MONTHS TO GET ALL OF THE PROGRAM DRILLED ...
[CLASSROOM] INCOME IS HIGHEST AT THE BEGINNING BECAUSE THE WELLS HAVE MAXIMUM PRESSURE
[CLASSROOM] LIFE OF THE WELLS IN MOST AREAS WILL GO UP TO 30 YEARS
[raven] Is there a minimum required to invest in on of these deals?
[CLASSROOM] NORMALLY AOBUT 50K
[CLASSROOM] BUT YOU CAN BUY A HALF UNIT WITH SOME COMPANIES
[JimmySmack ] With ALL of the natural resources we have here in our US borders,
how can we quiet the environmentalists to get energy independent asap!
[CLASSROOM] TREE HUGGERS ARE ALWAYS AN ISSUE GETTING PERMITS TO DRILL. I WORKED
WITH A COMPANY THAT HAD TO DRILL WELLS TO PUT CLEAR WATER BACK INTO THE GROUND
THAT THE RANCHERS WANTED. THEY HAD WATERING HOLES, HUGE TIRES CUT IN HALF AND
EPA MADE THEN INJECT THE WATER BACK IN THE GROUND
[CLASSROOM] OUR GOVT AT WORK
[CLASSROOM] NORTH DAKOTA HAS A TON OF OIL AND GAS .... RIGHT NOW IRAQ BURNS
OFF ALL THE NAT GAS, CAN'T USE IT ALL
[chillimac] what about wind and solar as investments
[CLASSROOM] GOOD IDEA CHILLI ...... NO ONE WANTS A WINDMILLL BLOCKING THE VIEW
OF THE OCEAN. MY BROTHER IN LAW GOES TO FRANCE TO PUT THEM UP . GO FIGURE
[CLASSROOM] WE AER PROGRESSING IN THIS AREA THO
[HEARTLANDLOCKED] Which firms or companies have easy plans for the beganing
level investor in this investment.
[CLASSROOM] THERE ISN'T A PROGRAM FOR THAT YET IN MY INDUSTRY
[CLASSROOM] MOST INDEPENDENT ADVISORS HAVE GOOD PLANS
[wisewarrior] i hear rfolks pounding the table on suncor....canadian
oil SANDS... What say you?
[CLASSROOM] GOOD DIVIDENTS WISE .... CANADIAN OIL SANDS ARE GREAT INVESTMENTS .. THEY HAVE SOME BUSINESS TRUST . OR MASTER TRUSTS THAT INVEST UP THERE
[CLASSROOM] DIVIDEND WERE IN THE HIGH TEENS A WHILE BACK
[baracho] There are those who think that all that fracking is causing the
[CLASSROOM] I SERIOUSLY DOUBT THAT .... BUT IT IS BRINGING UP A TON OF OIL
[MotorCityGuy] Why is propane so expensive?
[CLASSROOM] I HAVE NO IDEA .... NEVER BOUGHT PROPANE ..... MCG ... IN
THE MOTORCITY YOU DON'T HAVE TO BUY IT?????
[Shanie] Are the 20% and 5 to 7% paid out monthly or yearly?
[CLASSROOM] THOSE ARE ANUAL RATES ....
[CLASSROOM] PROJECTED ... JUST AS A AN EXAMPLE OF WHAT I HAVE SEEN BEFORE
[sonnayhwh] How does one invest and is it a capital investment with others
controlling what it is invested in?
[CLASSROOM] IT IS INVESTING IN PUTTING WELLS IN THE GROUND . THAT IS WHY YOU
GET A TAX DEDUCTION
[CLASSROOM] YOU INVEST IN A PROGRAM OR SYNDICATE THAT IS RASINGMONEY
[CLASSROOM] SUNNY ... IT DEPENDS ON THE COMPANY AND LOCATION OF THE WELL ...
ALL ARE DIFFERENT
[bfree] What are your thoughts of Doug Casey and Matt Badiali?
[CLASSROOM] THEY ARE WRITERS FOR A NEWSLETTER COMPANY. THEY PICK GOOD STOCKS ...
[nevis] What is the normal investment per drill? Are there ever any losers?
[CLASSROOM] YES THEERE ARE LOSERS ..... ANYWERE FROM 200K PER WELL TO 350K
PER WELL ... ALL DEPENDS ON THE DEPTH
[CLASSROOM] RARELY DO YOU GET A DRY HOLE AS THEY SAY IN THE BUSINESS ...
THEY ARE DEVELOPMENTAL DRILLING
[CLASSROOM] NOT EXPLORITORY
[ztenor] which is better to invest in equipment or the well itself??
[CLASSROOM] I LIKE EQUIPEMENT INVESTMENTS .... WHEN PRICES ARE HIGH ...
SOME OF THE PROGRMS LIKE THE GUYS SAID ABOVE ARE HIT OR MISS
[CLASSROOM] LIKEIN THE GOLD RUSH ..... MORE MONEY WAS MADE SELLING THE PAN
THAN THE GUYS THAT WERE PANNING FOR GOLD
[coorslite21] You don't know anything about the Bakken Oil Fields?
[CLASSROOM] LIKE IS SAID ... NORTH DAKOTA HAD HUGE OIL DEPOSITS AND YOU
CAN'T GET THE WELLS DRILLED THERE FAST ENOUGH.
[CLASSROOM] AND PEOPLE GET JOBS IN THAT TOWN IN HOURS
[CLASSROOM] WHAT MORE DO YOU WANT TO KNOW
[CLASSROOM] GO THERE
[CLASSROOM] BAKKEN OIL FIELD ROCKS
[libbythelab] Do you buy the limited partnerships though your broker or
do you have another source?
[CLASSROOM] YOU BUY THEM THRU YOUR BROKER
[c-wilson] How do you find a good operator? Is there a listing service or is
it just hit and miss?
[CLASSROOM] YOU NEED TO FIND A BROKER THAT HAS GOOD CONTACTS
[codreamer59] What is the average initial investment?
[wisewarrior] the us is the saudi arabai of coal...if we get a different
president can we really do clean coal? And which co's do you suggest besides
btu and wlt
[CLASSROOM] I LIKE COAL ..... COAL COMPANIES HAD A GREAT RUN A COUPLLE YEARS AGO. MOST POWER PLANTS - ELECTRICAL- WERE COAL BURNSER
[CLASSROOM] BUT ENVIRONMENTALISTS WANTED TO SWITCH TO CLEANER BURNING NATGAS FOR ELECTRICITY
[CLASSROOM] BUT THE PROCESS OF BURNING COAL IS MUCH CLEANER ....
[CLASSROOM] A DIFFERENT ADMINISTRATION WITH DIFFERENT LOBBISTS WILL CHANGE THAT
[CLASSROOM] FOLLOW THEMONEY
[HEARTLANDLOCKED] Can you have a say in the geographic region or location of drilling
[CLASSROOM] YES BUY THE OPERATOR OR COMPANY YOU BUY FROM OR WORK WITH .
[CLASSROOM] SOME ARE OUT WEST AND SOME ARE MIDWEST
[CLASSROOM] AND SOME IN THE GULF AND TEXAS
[CLASSROOM] OKIE WILL HAVE A PROGRAM PROBABLY
[CLASSROOM] THIS IS FOR BASIC INFO
[FRIEND3] What kind of roi would you typically expect from an average 50k investment!!
[CLASSROOM] YOU PUT YOUR MONEY IN THE GROUND
[CLASSROOM] AND IF ITSA GOOD PROGRAM.. OVER 10 YRS MAYBE ABOUT 56 TO 8 %
[mcmc] I have read it is good investment to just buy into leasing--your opinion please
[CLASSROOM] LEASING OF EQUIPMENT .. I TALKED ABOUT THAT LAST WEEK ...
I HAVE YET TO SEE A PROGAM TO INVEST IN LEASING OIL EQUIPMENT. BUT, THERE ARE CONTRACT
DRILLERS OUT THERE THAT ARE PUBLIC THAT ARE GOOD INVESTMETNS WHEN THEY ARE BUSY
[wisewarrior] what about chesapeake energy?
[CLASSROOM] GOOD COMPANY . GOING USE ALL MY DINAR PROFITS AND BUY THE WHOLE COMPANY AND TAKE PRIVATE!
[CLASSROOM] NAAAAAA .. BUT A SOLID INVESTMENT
[broadriver] What is the success rate of drilling, and is one's investment for
a specific well?
[CLASSROOM] NORMALLY A GROUP OF WELLS ... AND SUCCESS RATE OF OVER 90 %
[petersma] According to the potential returns that you indicated they seem like
good high returns. If that is true, would you consider Oil/Gas investing high risk or
low liquidity as we have been told that investing is basically 2 of 3 return, risk or liquidity?
[CLASSROOM] NO LIQUIDITY ... ABOVE AVERAGE RISK ....
[CLASSROOM] NOTHING IS GUARANTEED
[Dancing Bear] Are oil prices high and gas prices low because of dirty politics?
and does investing in oil perpetuate the problem
[CLASSROOM] AND ITS MORE LIKE 10 TO 20 YEARS
[CLASSROOM] NO .. GAS IS REALLY LOW BECAUSE THE WARM WINTER AND OVER SUPPLY.
IT WILL CORRECT ITSELF OVER TIME
[broadriver] What are the chances of success? any stats? percentages?
[CLASSROOM] DEPENDS ON OPERATOR .. OVER 90% SUCCESS RATE
[CLASSROOM] EVERY COMPANY IS DIFFERENT AND CAN PROVIDE YOU WITH THAT
[c-wilson] Dealing with the 10 to 40 well units, does the 50k go across all units
or is your exposure to 1 particular well in the unit?
[CLASSROOM] EQUAL OVER ALL WELLS
[wisewarrior] so if in 30 years we have exhausted technology to horizontal drill
will solar finanlly be viable
[CLASSROOM] SURE . WHEN CHEAP GAS RUNS OUT
[HEARTLANDLOCKED] Can an individual find thru there own research, companies or
locations that are tapping or producing better results than others prior to an investment
[CLASSROOM] SURE ... ITS PUBLIC DATA . ALL REPORTED
[twhite0772] can you pull your investment out at anytime or is it locked in? Thanks
[CLASSROOM] LOCKED IN ... ITS IN THE GROUND . NO CASH BALANCE...JUST INCOME
[CLASSROOM] TAX PREFERRED INCOME
[Footstank1] What is the average barrels per day production on a well, over the
life of the well?
[CLASSROOM] NO CLUE ... 5O BPD UP TO 500 I GUESS .. SOME ARE HUGE DEEPER WELLS ... SOME ARE CHEEPER AND SHALLOW AND LESS BBARRELS PER DAY
[CLASSROOM] IS MORE REVENUE VS COST
[hollyberry] Is Ethenol a good investment and what companies to stay away from?
[CLASSROOM] Just trying to keep it in the scope of my knowledge . Not an expert
[CLASSROOM] ETHENOL IS CORN .. CORN IS A GREAT INVESTMENT ... WHEN THE
GOVT MANDATE ETHENOL IN GAS AND THERE ISN'T INFRASTRUCTURE TO HANDLE IT ALL .. MAKE FOR HIGH PRICES
[eleanor] are personally involved in well drilling companies
[CLASSROOM] AM I? I HAVE BEEN PERSONALLY INVOLVED YES
[CLASSROOM] I HAVE SOLD THEM BEFORE AND FAR FROM AN EXPERT.
GOOD LUCK EVERYONE AND TAKE YOUR TIME GETTING INTO ANYTHING. LET EVERYTHING SETTLE DOWN
[CLASSROOM] HAVE A GREAT NIGHT
[CLASSROOM] THE END .. AMEN!