Buying Oil Wells

North Dakota oil fields offer oil investors the opportunity to buy oil wells. Buying oil wells  is one of the best investment options for the accredited investor, because of the number of advantages and incentives available to the investor compared with other oil investment opportunities. When buying oil wells in the North Dakota oil fields, an investor must be accredited, meaning there are minimum financial qualifications that must be met. However, the process of becoming accredited is well worth the effort for those who meet the financial qualifications because of the significant opportunity presented when buying oil wells.

Buying oil wells in the North Dakota oil fields is one of the best ways to participate in the American oil revolution

To participate in the American oil revolution in the North Dakota oil fields, you don’t have to run right out and purchase an entire well. In fact, the best method for buying oil wells in the North Dakota oil fields is to invest in ownership units of a number of different wells. Buying oil wells through partnerships provides you with all of the advantages of owning a well while sharing the risk among a number of investors.

Buying oil wells in the North Dakota oil fields provides significant tax benefits

Buying oil wells in the North Dakota oil fields can be more advantageous to the investor than investing in stocks. Buying oil wells allows you to write off the costs of development and production in the form of deductions and depreciation, but there are additional tax advantages available, too. When you are buying oil wells or investing in units of ownership of a well, you also have the opportunity to earn up to 25 percent of the income from the well tax free. There are additional incentives available for investors buying oil wells who make improvements to the well.

Buying oil wells in the North Dakota oil fields does not have to be high risk. While there is always risk involved in buying oil wells, there are technologies available now that allow you to more clearly determine whether or not the oil in the North Dakota oil fields well will produce and whether or not there is oil available where you plan to drill. In addition, there are new drilling technologies that make the likelihood of being able to access the oil you find more likely.

One thing that many investors do not realize is that an oil well in the North Dakota oil fields can continue to produce for a long time – often 20 to 50 years. Buying oil wells is a long-term investment that continues to pay out diminishing returns over a long period of time. Because most of the costs are up front with buying oil wells, the long-term profitability of a successful well can be more than just an income to an investor; it can be a legacy.

 

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