Drill, Baby, Drill

On August 27, 1859, near Titusville, Pennsylvania, American railroad conductor and entrepreneur Edwin Drake drilled the first commercial oil well.

That moment in history sparked an industrial revolution that forever changed the U.S. economy, standard of living, and culture.

Today, oil is the only commodity in the world that’s used in every sector of the economy. Everything that we buy involves oil in some way, shape, or form—from the computer I’m typing on to the fertilizer used to feed the nearly 8 billion people on the planet.

Much of the time it’s something we take for granted. But recent events in the Middle East have served as a reminder of the importance of oil to the economy and highlighted the very real implications for energy security and affordability when the oil supply is disrupted.

Here the old adage, “If you want a thing done well, do it yourself” comes to mind. As it stands, the U.S. is currently ninth in the world in proven reserves, but number one in production—making us close to “oil independence”.

However, based on production and current reserves, the U.S. has maybe 10 years of oil left. It needs new exploration to ensure it doesn’t become heavily reliant on foreign oil again as it was in the 1970s.

The good news is the U.S. has potentially four to five times current proven reserves—it just has to be found and extracted. And there’s more good news: oil exploration is incentivized through tax benefits.

You can take advantage of the tax benefits as an individual investor while potentially getting a nice cash flow for your retirement.

For more than 25 years I’ve been working with a company that helps clients to do just that by acquiring income-producing, low-cost oil reserves. You own it directly, like a piece of real estate.

Given the importance—and price—of oil, it makes sense to have some in your investment portfolio making it an asset rather than merely an everyday expense.

My long-time oil contact, Don, will be joining me later this week to share the inside track on this cash-flow investment that is 100% tax deductible.

If you’d like to listen in on our conversation, just click here to register obligation-free.

Stay diversified,

Lief Simon
Editor, Offshore Living Letter