WHY WHEELER RESOURCE RECOVERY?

We are an 86-year-old company with a proven track record of expertise and success. Our founder has put over 29,000,000 barrels of oil in the tank.

WHAT IS SECONDARY OIL RECOVERY?

The bulk of the oil in a field is extracted in the second phase of development at a lower cost and at a much lower risk than primary recovery. We recover up to 50% of the original oil, while sustaining and increasing production by injecting water.

HOW DO YOU EVALUATE AN OIL & GAS PROJECT?

When evaluating an oil & gas project, you’ll want to look at the company’s track record, figure out whether the company has an actual stake in the project, and calculate your return on investment (ROI). Luckily, Wheeler has a proven track record of success with secondary oil recovery and we invest our own money into every project, only making money when our investors do too. Through secondary oil recovery, our projects are also cost efficient, come with unique tax benefits, and have a much lower breakeven price than primary oil recovery.

WHO IS ELIGIBLE TO INVEST?

We have established a field development project where a non-industry investor can participate in the same capacity as an industry insider. As such, we are looking for accredited investors, regardless of industry knowledge, who want to be a part of a low-risk, high-reward investment. We seek out investors that want to partner with us to successfully execute a development project, all while not exposing the investor to the full cost of the cost of the project.

HOW DO I MAKE MONEY INVESTING?

Where other companies in the space make money by raising money, we make money by successfully completing projects. We have a vested interest with our investors, meaning we only make money when you make money.

WHAT ARE MY TAX BENEFITS FOR INVESTING?

Oil investing tax breaks are significant. The Federal Tax Code Section 263 and Section 179 allows our investors to deduct 90% of total invested funds, the year deployed, against all other taxable income, active, passive or portfolio. It is important to note that these are not deductions of a loss subject to the $3,000.00 annual limit, but are treated by the Tax Code as the deduction of an expense and can be taken in full the year incurred regardless of any other loss/gain deduction for the year. Additionally, the Tax Code allows all oil revenue from your oil well to be 15% tax free under the Federal Depletion Allowance. For any questions, contact us here.

How Do Current Events Affect Oil and Gas? - Wheeler Resource Recovery

Kevin Thibeau and J.P. Bolton, Principals, Wheeler Resource Recovery

Political decisions, extreme weather events, and shifts in the economy impact all industries, and the oil and gas industry is no exception. This past year, economies worldwide experienced drastic changes due to the conflict in Ukraine, reinforcing the reality that there are no certainties regarding the economic climate of our nation and the world in the future.

While it remains uncertain what challenges our country might face ahead, the only certainty is that change will occur. With that in mind, our team of experts at Wheeler Resource Recovery, will walk you through how current events like summer travel season, natural disasters, and periods of economic uncertainty could affect the oil and gas industry.

What does it mean when gasoline prices fluctuate from day to day?

Gas prices constantly fluctuate as a response to economic, political and climate-related shifts in the world. 2022 brought the highest gas prices that the U.S. has seen yet, capping out at over $7.00 in parts of California. The United States is not the only country that experienced the financial burden of high gas prices as the war in Ukraine impacted economies all over the world. Russia is responsible for supplying 10% of the world’s oil and gas reserves, and with financial sanctions in place for Russia following the war – there is a gap in the global supply. Also, homes in Europe require natural gas as their main form of energy, which means that Europe’s high demand for gas is driving up the bidding price for all nations. Another contributing factor to gas prices is oil refineries having to close for maintenance or shutting down as a result of an accident, making the industry unpredictable because they can close at any given time.

Ultimately, when oil and gas prices rise or fall it is due to the ebb and flow of supply and demand. If refineries and entire nations are unable to contribute to the usual supply of oil, the cost will inevitably rise just as the cost would fall if there is a surplus of oil.

How will summer travel impact oil and gas prices?

One such example that causes demand to spike is peak summer travel months. The Transportation Security Administration (TSA), airline companies and rental car companies are heeding warnings that summer 2023 is expected to break record travel highs. Over Memorial Day Weekend alone air travel is expected to increase by 11% since last year, and AAA is expecting 42.3 million Americans to travel 50 miles or more.

With a growing demand for oil and gas in the coming months, we can expect to see higher gas prices.

How do natural disasters affect the oil and gas industry?

Catastrophic weather events like hurricanes, tornadoes, and blizzards can quickly impact the oil and gas industry as oil refineries and rigs often lose power and are forced to pause their operations. Oil and gas pipelines can also be erupted, causing workers to scramble to assess and repair any damage done to pipelines’ infrastructure. Hurricanes are arguably the most threatening weather event to the oil and gas industry in the United States. With a six-month long hurricane season, it is common for gas prices to soar following large storms as half the nation’s petroleum and natural gas capacity is located near the Gulf Coast, which puts gas and oil in a constant state of vulnerability as the location of the reserves is likely to be damaged by harsh weather. These potential issues do not diminish the need for energy. They only create a favorable climate for energy asset holdings.

What would recession mean for oil and gas?

Oil and gas tend to be “recession proof” as there is always a demand to heat homes, power factories, and fuel vehicles. During a recession, people are limited to how much money they can spend and allocate to necessities versus non-essential items. People spend less on non-essential products and allocate a greater percentage of disposable income to energy, food, medicine and shelter. However, the oil and gas industry’s current state is unlike what it was during past recessions, which begs the question of how a recession would impact the industry today. Normally, there is a substantial amount of spare oil and gas in reserves, but the current capacity is only 1.5% of global production, meaning that there is a very small amount of oil and gas to spare. This also means that oil and gas inventories and capacities will not increase unless demand ceases, which is why a recession would actually be beneficial for the industry. A recession would give oil rigs and refineries the opportunity to replenish their stock and return to normal capacity levels.

Oil and gas investments have favorable tax deductions. Will that continue to be the case?

There is a possibility that the current administration will reduce the highly desirable tax deductions for capital invested in drilling projects.

If the current administration were to change the tax deduction policy for drilling project investments, it would likely take months to years before the new legislation would be implemented. Any investments made prior to the reduction would still have the same benefits of the current tax code. If someone is interested in investing in the oil and gas industry, it would be advantageous to make the decision sooner rather than later to take advantage of the current policy, which declares all oil and gas costs as 100% deductible. This will eliminate the risk on their investment since the tax changes would only apply to future oil drilling projects.

How can investors take advantage of high oil and gas prices?

Under the current combination of market factors – growing demand, constrained supply, and favorable tax environment – oil and gas investments offer an unmatched opportunity for individual investors. In particular, secondary oil recovery provides a low-risk high-reward investment. To explore which oil and gas investments are right for you, contact Wheeler Resource Recovery.