Wheeler Radio Tour Draws Huge Audience, Sheds Light on Tax Benefits in Oil & Gas Investments

In the fast-paced world of the oil and gas industry, staying ahead of the curve is essential to investment success. Leading the charge in understanding the intricacies of this dynamic sector is Wheeler’s President, Kevin Thibeau. His insights into the ever-shifting trends have positioned him as a sought-after authority.

In late 2023, Kevin’s expertise became the focal point of attention for radio stations spanning the United States. Reaching an audience of over 640,000 individuals, Kevin played a pivotal role in enlightening the market about low-risk, high reward investment opportunities in secondary oil recovery in proven oil fields.

Kevin shared his insights on industry trends, including current prices and future predictions for the oil and gas market, the tax benefits investors can reap in the year ahead, and what prospective investors should consider before diving into this domain.

If you missed Kevin’s insightful radio interviews (listen here), don’t worry! Below is a summary of the fantastic investment opportunities awaiting investors in the oil and gas sector and how you can take advantage of them.

High gas prices present a substantial ROI for investors

High gas prices in 2023 presented a substantial return on investment for Wheeler investors and that trend is set to continue. Despite reports that demand for oil and gas is slowing down, the industry remains strong. Electric vehicles and other alternative forms of energy are making waves, but the transition away from fossil fuels is one that is decades away.

Indeed, the end of the COVID-19 pandemic, the realities of winter, and robust summer travel season ahead will continue to drive demand. Meanwhile, the conflict in Ukraine continues and unrest in the Middle East will continue to disrupt supply. With demand expected to remain high and supply low, prices will continue to rise which oil and gas a timely investment.

A testimony to this ROI is Wheeler’s Madison County, Texas field development project. Unlike many companies constrained by governmental regulations, as a private entity on private land, we capitalized on high gas prices to unlock avenues for growth and success. The project is on track for a staggering $610M in revenue from our oil sales, underscoring our commitment to maximizing opportunities amidst market dynamics.

Tax benefits of oil and gas investments

In addition to ROI, smart investors should also consider the tax advantages linked to alternative investments, such as secondary oil recovery.

Here are six tax benefits awaiting investors in oil and gas:

  1. 100% tax write-off for intangible drilling costs (IDCs) with a direct investment in oil and gas. IDCs are drilling expenses related to labor, fuel, chemicals, hauling, etc. and represent 70% to 85% of the cost of a well.
  2. Tangible drilling costs (TDCs) – essentially, drilling equipment costs – are capitalized and depreciated over a seven-year period.
  3. Intangible completion costs (ICCs) are deductible in the year they’re incurred. These include labor, completion materials, and more, and often amount to 15% of the total well cost and provide a great tax benefit.
  4. Oil and gas assets are depreciated over a seven-year period. Equipment and tangible completion expenses generally account for 25% to 40% of the total well cost.
  5. Oil and gas depletion allowance permits investors to shelter 15% of a well’s annual production from income tax. This deduction will typically shelter 15% of the well’s annual production from income tax – a significant tax saving.
  6. Lease operating expenses are deductible in the year they’re incurred without alternative minimum tax consequences.

For a deeper dive into these tax benefits, check out this resource.

Tips for investors new to investing in oil and gas

Investing in an oil and gas project can be low risk and high reward. Of course, you should evaluate any investment carefully and approach any opportunity with caution. But now is an opportune time to invest in a tangible asset that offers many tax benefits, including tax write-offs, consistent cash flow, and a great ROI.

Indeed, secondary oil recovery stands out as a superior option compared to traditional investment vehicles like stocks, real estate, and cryptocurrency, which are more susceptible to market fluctuations. For example, despite a challenging political climate in 2023, Wheeler’s team celebrated an award-winning and successful year for our investors in which we continued to innovate and expand to generate even more opportunities.

In conclusion, the outlook for the oil and gas industry is incredibly optimistic. Nonetheless, it’s important to recognize that the tax advantages associated with any investments made this year may not persist into 2025. This underscored the importance of prioritizing oil and gas investment as a key part of your financial objectives this tax year.

To learn more or find out if investing in oil and gas is right for you, contact us now for a free consultation.