Investments

Connecting You To Oil and Gas Investment Opportunities

Return On Investment

Increased Demand Could Increase Profits

The United States is the top oil-producing country globally, with over 19 million barrels of oil produced every day. However, with ever-increasing international industrialization, global oil demand continues to rise, year after year. As this occurs, the fundamental economic rules of supply and demand take charge. 

Investors benefit from this ever-increasing demand by being able to sell all the resources they produce.

Risk vs. Reward Impacts ROI

The most common way to directly invest in developing an oil and gas-producing property is a partnership. Millennium’s energy development ventures aim at producing indispensable resources and capitalizing on solid pricing and a steady, unquenchable market. 

Among the riskiest of speculative investments, this higher-risk profile thrives because successful projects can return significant gains. These projects begin producing reserves and cash flow, usually within weeks of completion, and remain profitable for decades. Long-term production statistically leads to returns of 5 or 10 to 1 in many cases.

"Something every accredited investor should know about."
- Bill D., Kansas City, MO.

Tax Benefits of Oil and Gas Investments

One option stands alone above all others regarding tax-advantaged investments for Accredited Investors: oil and gas development. 

Federal tax laws intended to spur domestic oil and gas production created substantial tax incentives for investors and small producers. Generally, an investor writes off their entire capitalization in the current year from their Active Income, sometimes referred to as Ordinary Income. This type of income is the most difficult to shield from income taxation.

The Cost Of Doing Nothing

With unforgiving tax brackets, Accredited Investors pay a hefty price by not considering oil and gas investments as a hedge. The tax incentives of energy development allow investors to convert a portion of their tax liability into risk capital with tremendous upside potential.

Monthly Cash Flow

Most oil and gas development properties begin flowing resources shortly after the completion of drilling operations. Depending on production volumes, sales can start immediately and remain active 24/7. This constant sales stream affords developers generous monthly cash flow, often reaching 10% of their investment per month

Tax Benefits of Energy Developments Investments

Who uses these types of tax benefits?

Accredited investors whose yearly tax burden approaches or exceeds $1,000,000 and pay the top Federal and State income tax brackets. Because these tax benefits reduce an investor’s tax burden by lowering their ordinary taxable income, their financial risk decreases as their tax burden increases.

Why do these tax benefits exist?

The 1986 Tax Reform Act intends to compel investment into developing domestic natural resources and relieve our dependency on foreign sources by implementing a considerable upfront tax deduction for investors participating in domestic exploration and production.

How much of the investment is tax deductible?

All of it! The Tax Code allows investors to deduct the entire investment amount against their ordinary income, the most challenging income to shield from taxation, in the year the investment is made.

Why should I consider this investment option?

Sophisticated investors participate in developing energy producing properties because they can subsidize a portion of their venture with tax dollars while targeting the attractive returns associated with high-risk investments.

Learn More Today

If you are interested in discovering more about the considerable tax benefits and potential upsides of oil and gas development ventures, our team can help. As specialists in the field, we aim to help current and future investors understand the opportunities—and risks—and see maximum returns from their investments.

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