If you’ve been thinking about investing in oil and gas, 2025 is shaping up to be a golden opportunity. With a new administration, strong market conditions, and major tax benefits still in place, investors have a chance to capitalize on what could be a very profitable year. Let’s break down why now is the time to act.
New Administration, New Policies—But Oil & Gas Remains Strong
Whenever a new administration comes in, there’s always uncertainty about what changes might come for energy policy. But here’s what we do know: U.S. policymakers continue to support domestic production, and Texas remains a top destination for investment-friendly regulations.
One of the biggest policy shifts to watch is the creation of the National Energy Dominance Council, which aims to cut red tape and boost U.S. energy output. That means fewer barriers for companies like Wheeler Resource Recovery and more opportunities for private investors to benefit from domestic production.
Oil Prices Are Stable—And That’s Great for Investors
Unlike the rollercoaster years we’ve seen in the past, 2025 is kicking off with some of the most stable oil prices in decades. In 2024, Brent crude oil prices stayed between $74 and $90 per barrel, and experts predict similar levels for 2025. This kind of price stability is rare and makes for a solid investment environment.
Natural gas prices are rising, and with OPEC keeping production steady, prices are expected to remain strong. That means steady returns for investors looking to get in now.
New Tech Is Making Oil & Gas Even More Profitable
The oil and gas industry isn’t sitting still—it’s evolving. New advancements in carbon capture, utilization, and storage (CCUS) are making oil production more efficient while also addressing environmental concerns. That’s a win-win for companies and investors alike.
Projects like Quest in Canada and Northern Lights in Norway are proving that these technologies can reduce emissions while maintaining profitability. As the industry embraces these innovations, long-term investment potential only gets stronger.
Tax Breaks Are Still Huge for Investors
One of the biggest reasons oil and gas investing is so attractive? The tax benefits. Here are just a few you’ll want to take advantage of in 2025:
- 100% deduction for Intangible Drilling Costs (IDCs) – These cover things like labor, fuel, and chemicals and usually make up 70-85% of the cost of a well. That’s an instant tax write-off.
- Tangible Drilling Costs (TDCs) are depreciated over seven years, giving you long-term tax relief.
- Depletion allowance shelters up to 15% of a well’s annual production from taxes, reducing your taxable income.
- Lease operating expenses are fully deductible in the year they’re incurred.
For accredited investors, these tax breaks can make a huge difference when it comes to lowering taxable income and boosting overall returns.
Why Now? Timing Is Everything
Everything is lining up to make 2025 a prime year for oil and gas investment:
- Strong demand: Oil and gas consumption continues to grow, and EV sales have leveled off, meaning fossil fuels are still a critical part of the global energy mix.
- Private operators are thriving: Smaller, independent oil companies are seizing high-margin opportunities that major corporations often overlook.
- Market stability: With oil prices holding steady and OPEC maintaining production levels, investors can expect reliable returns.
- Tax incentives remain strong: Investing this year ensures you can still take advantage of existing tax benefits before any potential policy shifts.
Final Thoughts: Don’t Wait Too Long
The oil and gas industry is in a sweet spot right now. Between strong prices, stable demand, new tech, and unbeatable tax advantages, 2025 is shaping up to be a great year for investors.
Interested in learning more? Click here or email us at info@wrsrc.com and we can connect about investment opportunities that are right for you.