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menu-item-type-post_type menu-item-object-page ss-nav-menu-item-7 ss-nav-menu-item-depth-0 ss-nav-menu-reg"><a href="https://web.archive.org/web/20150403232341/http://www.arescotx.com/contact-us/"><span class="wpmega-link-title">Contact</span></a></li></ul></div></div> <div class="sidebarYellow"> </div> <div class="sidebarWhite"> <div class="text"> <div id="content"> <h1>Advantages of Oil & Gas Investing</h1> <p>As high net worth investors grow restless in today’s low yield environment, many are more willing than ever to abandon the investment mainstream in search of opportunities that may deliver higher returns. With a strong combination of high ROI potential, significant tax benefits, and portfolio diversification, direct participation in oil and gas joint ventures meets a wide variety of aggressive investment objectives.</p> <p class="sec-third"><b>Investing in energy can provide decades of passive income and strong ROI potential. </b>With oil consistently near or above $80 per barrel over the past four years, direct participation in oil and gas is a great way for partners to potentially benefit from returns that outpace most market-based investments. But there’s more to the story than the price of oil. Improved technology and the shift to developmental, infield drilling in both proven conventional fields and unconventional shale have changed the dynamics and lowered the risk of investing. The combination of high-energy prices and improved success rates sets the stage for strong investment performance.</p> <p><b>As a hard asset with low correlation to stocks & bonds, energy investments could protect your portfolio from short-term market fluctuations.</b> No single investment strategy is suitable for everyone; however, research has shown that adding energy to a portfolio may enhance performance while reducing overall risk. Direct energy investments (a portfolio with ownership in producing oil and gas properties) enjoy low correlation with other traditional asset classes and positive correlation with inflation. As a risk diversification strategy, direct energy investing may provide a buffer against fluctuating market conditions and inflation movements.</p> <p><b>Oil and gas projects offer some of the most attractive tax incentives for investments. </b>The IRS provides tax incentives to encourage private investments in domestic oil and gas production. For drilling program investments, approximately 60-80% of well costs may be fully deductible in year one as intangible drilling costs. The remaining amount is categorized as tangible costs and may be depreciated over time (generally between 5 to 7 years). In addition, 15% of a property’s gross cash flow is tax free in the form of a depletion allowance. An additional cost depletion allowance allows for 100% deduction of property lease costs, sales expenses, legal and administrative accounting expenses.</p> <p>While direct energy investments offer many advantages, they are not without risk. The following provides a brief overview of the uncertainties involved in oil and gas investing. Prospective partners should consult their attorney, accountant, and financial advisors before investing.</p> <ul> <li><b>Commodities Pricing </b>– Although prices are currently at or near historic highs, oil prices are expected to continue to fluctuate in the future.</li> <li><b>Drilling & Completion </b>– Drilling projects are complex with multiple moving parts. A myriad of issues including delays, equipment repairs can and will arise. There are no guarantees that any production will be achieved once a well has been drilled.</li> <li><b>Well Production </b>– Producing wells rely on mechanical equipment that requires regular maintenance and repairs. Production levels can vary each month and will decline throughout a well’s life. In addition, Acts of God or natural disasters may cause temporary or permanent loss of production.</li> <li><b>Investment Liquidity </b>– Ownership is not a liquid investment.</li> <li><b>Tax & Regulatory Changes </b>– Oil & gas operations are subject to extensive and changing regulation including taxation, environmental regulation, and energy regulations.</li> </ul> <p>Whether you are simply looking for the excitement of an investment in oil and gas exploration or are looking to diversify, <a title="Request More Information" href="https://web.archive.org/web/20150403232341/http://www.arescotx.com/request-more-information-on-oil-investment-opportunities/">we invite you to learn more</a> to determine if an Aresco project suits your investment objectives.</p> <p><i>The risk information listed above is provided for illustrative purposes only and may not represent actual situations.</i><i> </i></p> <p><i>The general tax discussion is provided for background information only. This information is not intended to be individual advice. Prospective partners should consult with their personal tax professional regarding the applicability and effect of any and all benefits for their own personal tax situation. In addition, tax laws change from time to time and there is no guarantee regarding the interpretation of any tax laws. For more information, please visit </i><a href="https://web.archive.org/web/20150403232341/http://www.arescotx.com/wp-admin/www.irs.gov"><i>www.irs.gov.</i></a><i></i></p> <p><i> </i></p> </div> <div id="sidebar"> <div id="flags" class="size"><ul id="sortable" class="ui-sortable" style="float:left"><li id="English"><a title="English" class="notranslate flag en"></a></li></ul></div><div id="google_language_translator"></div> <p class="parent"><a href="https://web.archive.org/web/20150403232341/http://www.arescotx.com/about-aresco/">Income Stability & Growth in the Energy Sector</a></p> <ul> <li class="page_item page-item-22"><a href="https://web.archive.org/web/20150403232341/http://www.arescotx.com/about-aresco/why-aresco/">Why Aresco</a></li> <li class="page_item page-item-20 current_page_item"><a href="https://web.archive.org/web/20150403232341/http://www.arescotx.com/about-aresco/why-invest/">Why Oil & Gas</a></li> <li class="page_item page-item-4922"><a href="https://web.archive.org/web/20150403232341/http://www.arescotx.com/about-aresco/oil-investing-tax-shelter/">Oil Investing Tax Shelter</a></li> </ul> <h2>Did you know?</h2> <div style="padding:0px 0px 15px 0px;"><div id="quotearea"><div id="quoterotator"> Loading Quotes... </div></div> <script type="text/javascript">quoteRotator.delay=10;quoteRotator.fadeDuration=4;quoteRotator.fadeoutDuration=2;quoteRotator.quotesInit();</script> </div> </div> <div class="clearFix"> </div> </div> </div> <div id="footer"><div class="text"><p>Aresco LP 861 N Coleman Road, Ste. 105 Prosper, TX 75078 <b>Phone: 972-992-3127</b> Fax: 972-992-3137 </p><div id="social"><a href="https://web.archive.org/web/20150403232341/https://www.facebook.com/pages/Aresco/510139499068554" target="_blank"><img src="https://web.archive.org/web/20150403232341im_/http://www.arescotx.com/wp-content/themes/arescoA3K/images/facebook.png" width="31" height="31" alt="Facebook"/></a><a href="https://web.archive.org/web/20150403232341/https://twitter.com/ArescoLP" target="_blank"><img src="https://web.archive.org/web/20150403232341im_/http://www.arescotx.com/wp-content/themes/arescoA3K/images/twitter.png" width="31" height="31" alt="Twitter"/></a><a href="https://web.archive.org/web/20150403232341/http://www.linkedin.com/company/aresco-lp" target="_blank"><img src="https://web.archive.org/web/20150403232341im_/http://www.arescotx.com/wp-content/themes/arescoA3K/images/linkedin.png" width="31" height="31" alt="LinkedIn"/></a><a href="https://web.archive.org/web/20150403232341/http://www.arescotx.com/feed/"><img src="https://web.archive.org/web/20150403232341im_/http://www.arescotx.com/wp-content/themes/arescoA3K/images/rss.png" width="31" height="31" alt="RSS"/></a></div> </center> <div class="clearFix"> </div> </div> </div> <div id="disclaimer"><center><p>This is not an offer to sell nor solicitation of an offer to buy any security. Such offer may only be made by a written prospectus in a jurisdiction wherein the offering is duly registered or exempt therefrom. This content is provided for informational purposes only. Nothing herein shall be construed as tax, legal, or accounting advice. Investing in oil and gas is highly speculative and could result in substantial losses. There are no guarantees that any returns will be achieved. Potential investors should consult their attorney, accountant, and financial advisors before investing in oil and gas.</p></center> <p class="copyright">Copyright © 2015<br>Aresco LP. 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