Current low prices present a classic investment opportunity.

Offerings in shale gas, conventional oil wells as well as pipeline partnerships may offer diversification and potentially attractive returns.

At Sourcenet, we counsel prudence and risk awareness for clients contemplating energy investments. The potential rewards may be great but careful due diligence is recommended.

Tax advantages in oil and gas offerings may be substantial. Many offerings have depletion benefits that exclude 15% of the revenue from taxation (Investors only pay tax on 85% of the income).

Another current tax benefit is the immediate deductibility of up to 90% of the investment. This "intangible" deduction potentially may be applied to other client income and is popular with those with high taxable personal income (Oil and gas is the only asset class to offer this deductibility against other income).

Investors should consult their tax professional to review the tax implications of these types of investments versus their unique situation.

Contact us to discuss how oil and gas may fit into your investment strategy.