(EMAILWIRE.COM, May 03, 2011 ) Los Angeles, CA -- International Journalism Review (IJR) in its continuing efforts to report on the energy and alternative energy news noticed a new player in the declining arena of oil and gas investment teams while researching various brokers, actual oil & gas producers, and the industry in whole. IJR noticed this warning as a highlight to the Source Rock Oil website (SRO) and contacted one of their specialist to learn more.

We were able to contact Jeremy Dawkins who appeared knowledgeable on the subject matter, and told us, "Although SRO was in the business of getting investors to look at oil and gas as part of a diversified investment portfolio option, its companies approach might be a little different then the norm in that it likes to give all the facts not just the positives."

By their own warnings, SRO explains that investors should only deal with two primary methods of investing in oil and gas. The first and most commonly known method is purchasing stock in an oil and gas company. The second is through direct participation in one or several wells where the investor actually owns a portion of the well and receives a share of the income it generates (this is the type of investment SRO delivers).
Dawkins explained, in the case of direct participation programs, oil and gas investments are typically structured on a "turnkey" basis, which means the company sets a fixed amount for drilling and completion efforts. Consequently, the investor will know precisely the amount of their investment dedicated to drilling and completion operations.

Dawkins says the number one thing broker or oil and gas companies fail to warn the masses about is the "who should invest in oil and gas question?" Dawkins went on to say "it is quite simple, because of the risk associated with oil and gas investments, investors must meet minimum suitability requirements as defined by the SEC, TX State Securities Board and the Financial Industry Regulatory Authority (FINRA, formerly the NASD). Suitability requirements state that you must meet the following conditions: 1) you are able to sustain the loss of all or a portion of the investment; 2) you can benefit from the tax advantages associated with the investment; 3) you are an accredited investor; and 4) if not accredited, you are a sophisticated investor and the investment does not exceed 20% of your net worth. This kind of warning could be compared to possible side effects of most prescribed drugs, however, it is important to point it out in the cases where it does happen."

IJR evaluated this and looked at the argument for investing in gas and oil as well. As many industry experts remind investors and with U.S. government facts to back it up, the world is seeing oil and natural gas supplies are declining, global demand is on the rise. The top ten oil-consuming countries alone consume over 50 million barrels of oil per day.

Even with the rising popularity of alternative energy sources as a means to fuel our cars, oil cannot easily be replaced as it is used to manufacture virtually everything we use on a daily basis, from clothing and pharmaceuticals to detergents and insulation. There are thousands upon thousands of petroleum-based products that we rely on every day.
As previously reported by IJR (these programs are not endorsed by IJR) that through direct participation programs in oil and gas, investors actually own a portion of the well and receive a share of the cash flow generated via monthly disbursements. In addition to the income potential, oil and gas investments offer substantial tax benefits, which the U.S. government has designed to encourage domestic drilling. Since the Tax Reform Act of 1986, direct participation programs in oil and gas are one of the few remaining investments that allow investors to shelter income, making it one of the most tax-advantaged investments today. Investors may be able to deduct as much as 65 to 100 percent of their investment within the first year, whether the well is successful or not, and 15 percent of your income is tax-free .

IJR likes to highlight companies that unilaterally make information known to help the masses of people that might not be experts in the respective fields. IJR commends www.SourceRockOil.com for these efforts and SRO also recommended that investors look at the track record of investors for any particular company, notify a tax expert to confirm or deny claims to tax benefits, and also find out exactly where the company is drilling for the oil and gas.


Chris Sloan / Senior Journalist / M.S. showcases government

International Journalism Review / http://www.InternationalJournalismReview.com
internationaljournalismreview@gmail.com / 347 882 4943 or 949 533 8454

Contact Information:
International Journalism Review
Chris Sloan / Senior Journalist / M.S.
Tel: 8058077201
Email us


This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.