The depletion allowance is a tax provision in the United States designed to account for the reduction of natural resources, such as oil and gas, as they are extracted and sold. This allowance allows businesses engaged in the extraction of these resources to recover some of their capital investment by utilizing a portion of their gross income from the sale of the resources as a tax deduction. For the oil and gas industry, the depletion allowance functions similarly to depreciation for other types of assets. However, unlike depreciation which accounts for the reduction in value of tangible asset ..read more

Ask any U.S. citizen what they notice first as they are driving to work and you can bet most will say “how much is it going to cost me to fill up my tank today”. Predicting daily fluctuations in gas prices with some degree of accuracy can make even the most seasoned gas and oil expert a little crazy, especially with political instability occurring in oil-rich countries and uncertainty about what OPEC is going to do. So, what determines crude oil prices? Some basic factors do influence the price of crude oil and can be used as relevant variables to determine whether we start the day paying a re ..read more

Intangible Drilling Costs (IDC) are a critical element of the financial landscape in the oil and gas industry. These costs encompass various non-physical expenses incurred during the exploration and drilling of oil and gas wells. What sets intangible drilling costs apart is their intangible nature, as they are related to activities and services essential for the drilling process but do not involve the acquisition of physical assets like drilling rigs or equipment. IDCs are tax-deductible expenses in the United States and are designed to incentivize domestic energy production. IDC deductions al ..read more

Upstream Midstream Downstream are terms commonly used in the oil and gas industry to describe different stages of the production and distribution process. Each sector has distinct activities and focuses on specific aspects of the overall oil and gas supply chain. Upstream: Activities: Upstream refers to the exploration and production (E&P) phase of the oil and gas industry. It involves locating, surveying, drilling, and extracting crude oil and natural gas from underground reservoirs. This includes both onshore and offshore activities. Key Processes: Exploration, reservoir analysis, dril ..read more

How to find out who owns the mineral rights of a property in Texas involves a combination of research and accessing public records from a variety of sources. Before we go into the details, let’s first discuss the many reasons why you would want to find out who owns the mineral rights of a property. Why search for mineral rights records? Mineral Extraction: If you’re interested in mining or extracting minerals such as oil, natural gas, coal, or minerals like copper or iron ore, you’ll need to know who owns the mineral rights. Before extracting minerals, you will need to purchase or lease the m ..read more

The value of mineral rights in Texas can vary widely based on a range of factors including location, the type of minerals involved, current market prices, lease terms, and more. Texas is a major hub for oil and gas production, so mineral rights related to oil, gas, and other minerals can hold significant value. A Guide to Mineral Rights in Texas Here are some key factors to consider: Factors Affecting Mineral Rights Value: Location: Mineral rights values can vary greatly depending on where the property is located. Some regions in Texas, such as the Permian Basin and Eagle Ford Shale, have his ..read more

As of 2022, the global demand for oil remains high despite the increasing push by western countries to use more renewable energy sources. Oil is a vital component of the global economy, and the countries with the largest oil reserves are some of the wealthiest nations in the world. In this article, we will discuss the eight top oil producing countries in the world in 2022, ranked in order from highest to lowest. Top Oil Producing Countries – Methodology The methodology in determining the top oil producing countries in the world was based on crude oil production from January 2022 through Decemb ..read more

The Fracking Groundwater Cover-Up delves into the question, “does fracking contaminate groundwater?” There have been countless studies conducted on the topic, but which studies reach the public and which studies get buried by modern-day censorship? Hydraulic fracturing (commonly known as fracking) is a decades-old technique used in oil and natural gas exploration and development in the United States and around the globe. Other countries that utilize fracking are Russia, Canada, Venezuela and Australia just to name a few. In fact, it is estimated that over one million wells have been fracked e ..read more

Permian Basin oil production is being fueled by advancing technology. The Permian region, which encompasses roughly 75,000 square miles of west Texas and southeastern New Mexico, has been a major oil and natural gas producing region for nearly a century. According to the Texas Railroad Commission, the Permian Basin currently yields about 40% of US oil production and 15% of domestic natural gas production. As technologies like horizontal drilling and multistage hydraulic fracturing continue to advance, the Permian basin is projected to be a top producing region for decades to come. Multistage ..read more

As high net worth individuals seek out tax-advantaged investments, one industry continues to stand out from the rest – the oil and gas industry. Oil and gas investments tax deductions are incentives created by Congress to spur domestic growth in production as a means of marching the United States towards energy independence. Some of the top oil and gas tax deductions include: Tax Deduction for Intangible Drilling Costs (IDC) Deduction on Taxes for Tangible Drilling Costs (TDC) Tax Deductible Intangible Completion Costs Depletion Allowance (Small Producer Tax Exemptions) Deductions for Equipm ..read more