Oil Drilling Programs

An Oil Drilling Program is a direct investment into the actual execution of drilling oil. The main advantage to investing in Oil Drilling Programs is the tax breaks. In fact, several major tax benefits are available for oil and gas investors that are found nowhere else in the tax code, including tangible and intangible drilling costs, small producer tax exemptions, and lease costs.

These investments are very illiquid and should not be confused with purchasing oil futures, oil options, commodity-based oil exchange-traded funds (ETFs), or oil stocks, bonds, or mutual funds. Oil Drilling Programs are typically done through partnerships and/or working interests with oil drilling companies.

Although, from a tax perspective, Oil Drilling Programs can be a great investment option, they are not for everyone, including investors looking for low-risk options. In fact, because of the risk involved, the SEC requires investors for many oil and gas partnerships be accredited, meeting certain income and net worth requirements. If an Oil Drilling Program seems like it might be a good option to include in your portfolio, be sure to work with a qualified Financial Advisor to find the best options to pursue.


NOTE: The information being provided is strictly as a courtesy. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.