The U.S. imports over 60% of it's oil from foreign sources compared to 40% in 1985. Demand for oil and gas is rising worldwide at about 2.5 to 7% per year, while supply has declined annually. The world supply will be one million barrels short daily by 2006 pushing prices likely to $60-80.00 a barrel. Virtually all the 300 major oil fields of the world are watering out meaning they can no longer provide increasing consumer demand from countries like China, Indonesia, the United States and other countries. We consume 80 million barrels of oil per day and we will need between 100 and 115 million barrels of oil per day by 2015 if not sooner. There is no way the world's nations can meet rising demand. Therefore prices will have to raise substantially meaning wealth for those who own oil in the ground.
There are no known alternative energy sources that can compete with oil and natural gas due to the energy output of a hydrocarbon and the laws of thermodynamics with respect to fuel cells and hydrogen. Oil and natural gas will be the fuel of choice for the next fifty years even though every known alternative energy method will be needed. Based on analysis by experts all alternative systems could account for only 40% of our energy needs for the next fifty years.
WOULDN'T I DO BETTER WITH EXXON OR SHELL?
All wealth for companies or individuals is made at the well head. Those who typically become rich are those who own oil interests in a good economic producing oil and gas field. Success rates have improved from 5% to 45% nationwide over the past 50 years. Source is the Office of Energy Information Agency. This is due to more information available and newer technologies.
The smaller independents find over 65% of all oil fields, not the major oil companies. The majors left behind thousands of smaller oil fields which, are now becoming valuable as shortages loom until the new giant oil fields are found. There will be an 8-10 year window of opportunity to create great wealth and then we will have sufficient new reserves.
WHAT ARE THE TAX ADVANTAGES?
The United States Government offers 100% tax write offs for what is called intangible drilling costs. In other words, an investor who pays for drilling of a well in the year of the investment will be able to write off a certain portion of the investment, regardless of the outcome of the well. The typical write-off will be 65-75% of the investment.
The reason is that the U.S. Government wants to encourage oil and gas exploration at home. In the case of West Virginia, the investor will received a tax statement from the VPR after the first of the year. If the investor invested $18,333.34, he will write off at least $13,200.00 or 72% for 2005. In other words his tax base is reduced. A tax opinion will be provided by VPR, if requested. In addition the investor receives 15% tax free income called depletion allowance. An oil and gas project is not a tax shelter, but rather a tax advantage not offered elsewhere to encourage exploration in the United States.
LOGDIGI has a 1:23 ROI Joint Venture Project in Oklahoma, for more information of investment, please contact:
4902 S. ALAMEDA ST. #604B
CORPUS CHRISITI, TX 78412