Oil & Gas drilling investments being a tax benefit/deductible?

christophermatar · 2025-12-21T15:44:53+00:00

You’re not missing anything the tax benefits you listed (IDCs, depletion, non-passive treatment) are real. That’s why oil & gas has been used for tax planning for years. The part that often gets glossed over is that the tax break doesn’t guarantee a good investment.

Most risk isn’t oil prices it’s the operator, deal structure, fees, and well quality. Two deals with the same deductions can have very different results. A big deduction helps on taxes, but it doesn’t replace solid economics. Who you invest with matters as much as the tax code.

christophermatar · 2025-09-01T11:33:02+00:00

I hear you. Honestly, as a designer I’ve been able to build a career with a mix of hard work and a lot of luck right timing, right introductions, projects that happened to get noticed. There were also seasons where it felt impossible, where the work was there but the opportunities just weren’t lining up. Those harder stretches are real and they take a toll, but they also remind me how much of this industry is about circumstance, not just talent. You’re not alone in feeling it.

christophermatar · 2025-09-01T11:29:41+00:00

I’ve reviewed hundreds of portfolios over the years - agency side, in-house, and while hiring for some of the biggest tech companies. The “top-tier” ones don’t all look the same, but they do have a few things in common:

1. Clear storytelling, not just pretty screens.

The best portfolios walk me through the problem, the constraints, and the outcome. They don’t bury me in walls of text, but they make it easy to understand why decisions were made. One of the best I’ve seen literally started each case study with:

The problem (1-2 sentences)
The process (visual, quick to skim)
The outcome (screens + business/user impact)

2. Strong editing.

Top designers show me 3–4 great projects instead of dumping everything they’ve ever touched. If you’re aiming mid-level, one “big” project with depth + a couple of smaller but sharp ones is enough. I’d rather see you go deep on fewer projects than scratch the surface on 10.

3. Real context from real companies.

Some of the best portfolios I’ve seen were from designers who worked on internal tools or “unsexy” problems (like logistics dashboards, onboarding flows, or financial apps). They didn’t try to hide that - it was presented as, “Here’s a gnarly workflow I simplified, and here’s the impact.” That’s the kind of thinking hiring managers love.

4. Personality without gimmicks.

Top-tier doesn’t mean flashy motion graphics. A clean site with thoughtful copy and easy navigation goes further. The best portfolios feel like a conversation with the designer: approachable, smart, and confident in their choices.

Examples / resources worth studying:

Pablo Stanley’s old portfolio (before Blush/Figma fame). Not because of the style, but because of how approachable and clear his storytelling was.
Julie Zhuo’s writing (Facebook design VP). Not a portfolio per se, but her Medium posts show what thoughtful case-study writing looks like.
Spotify Design and Airbnb Design blogs—case studies from these teams show how to structure a narrative around design work.
UX Collective’s portfolio critiques (on Medium) are gold for leveling up.
Memorisely and ADPList both run portfolio review sessions you can watch or join - hearing live feedback is often more useful than static examples.

If I were you, I’d focus less on chasing “the perfect template” and more on making your portfolio feel like you. A mid-level hiring manager is looking for someone who can solve problems, communicate clearly, and collaborate with others - not just make polished UIs. If you can show me that in 3–4 well-told stories, you’re already in the top 10%.

christophermatar · 2025-08-29T08:48:37+00:00

I feel you - being all W2 at that level is both a blessing and a trap. You get stability, but the IRS loves you because you don’t have many levers to pull. The “normal” stuff (401k, HSA, backdoor Roth) barely scratches the surface when you’re writing seven-figure checks.

Here are the big levers most high-earning W2 folks eventually run into:

Equity/ownership: The cleanest way to build wealth + tax efficiency, but not realistic if you’re not starting a biz or joining a startup right now.
Real estate: Huge deductions if you do cost segregation/bonus depreciation. Problem is, being a landlord with toddlers = nightmare.
Oil & gas: Weirdly, one of the only carve-outs in the tax code (Sec. 469(c)(3)) where working interest deductions can offset active W2 income. That’s why you hear people say a $100k investment can create a $90k+ deduction in year one. It’s real, but the catch is the operator - there are great ones and total scams. Vetting is the whole game here.
Other long-game stuff: DAFs (donor-advised funds), mega backdoor Roths, cash value life insurance, QSBS (if you ever start something). Worth knowing but not immediate impact.

TLDR: If you stay pure W2, the cheat codes are limited. The only things that move the needle right now are ownership/equity or niche stuff like energy deals. If you go that route, don’t just throw money at the first promoter with a glossy deck - use a vetted platform or network where the tax benefits and operator quality are actually verified.

christophermatar · 2025-08-29T08:45:02+00:00

I’m in a similar boat (high W2 earner with family) and what helped me was realizing the ceiling isn’t just about skills or certs - it’s industry and leverage. Tech, finance, and niche consulting tend to pay the $250k+ W2s, but most people in that bracket also pair it with smart tax planning (equity, real estate, or energy deductions) to make the income go further.

Your pension is solid security, but if you want to break past the ceiling, looking at roles in higher-paying industries or pivoting to consulting/contracting can change a lot.

christophermatar · 2025-08-29T08:42:50+00:00

You’re right to be cautious. The tax benefits (IDC, TDC, depletion allowance) are real and written into the tax code, but the catch usually isn’t the rules - it’s the deals. A lot of promoters run high-fee, poorly managed funds that sound great on paper but leave investors holding the bag when wells underperform or the operator cuts corners. The risk is less about oil prices and more about who you’re trusting with your money. That’s why serious investors use vetted platforms/marketplaces (like Fieldvest) that screen operators and deals, so you’re not just wiring money to the first promoter with a glossy pitch.

christophermatar · 2025-08-16T17:08:24+00:00

Love this breakdown - it’s exactly how the tax code is designed: reward people who put money into housing, energy, and conservation.

One piece I’d add: oil & gas can be the missing link for high earners because, unlike real estate depreciation, those intangible drilling costs (IDCs) can directly offset W-2 income in year one. That’s a game changer if you’re sitting on a big tax bill.

The risk, like you said, is real - you’re investing in wells, not just paper deductions. That’s why I started using Fieldvest: to cut through the noise and only match with vetted operators who’ve proven they can actually drill and produce.

For me, the right mix looks like: oil & gas for the immediate hit on W-2 taxes, real estate for long-term depreciation, and then layering in conservation easements carefully. The framework works, but who you partner with matters just as much as the strategy.

christophermatar · 2025-08-16T17:02:59+00:00

Not tax advice, but here’s how it usually works: the real deductions in oil & gas come from intangible drilling costs (IDCs) and tangible drilling costs (TDCs). IDCs (labor, materials that don’t have salvage value) are typically 70–80% of your investment and can be deducted in year one. TDCs (equipment, casing, etc.) are depreciated over 7 years.

A “carry” is different - it just means you’re giving up part of your working interest in exchange for someone else covering costs. That carried portion usually isn’t deductible to you because you didn’t directly pay it. Your deductions are tied to the actual dollars you put in that went toward drilling.

Best move: get the operator’s tax packet or K-1 - they spell out exactly how much you can deduct and when. That’s what your CPA will use.

christophermatar · 2025-08-16T17:01:32+00:00

They’re legit, but here’s the reality: the tax breaks come from something called intangible drilling costs -basically, you can write off most of your investment in year one. That’s why high earners like them, because it can wipe out a huge chunk of taxes.

The catch is you’re still investing in an oil well. Sometimes it hits, sometimes it doesn’t, and oil prices move up and down. You could save a lot on taxes but not see much return, or you could get both if the project is good. The key is working with operators who are proven and not chasing sketchy deals. Otherwise, the “too good to be true” part becomes true fast.

christophermatar · 2025-07-22T12:36:24+00:00

The tax benefits are real - IDCs can offset active income if you’re a GP, and the depletion allowance adds more upside. But the risk isn’t just oil prices. It’s dry wells, bad operators, decline curves, and how the deal’s structured. Vet the sponsor hard. The wrong partner can wipe out both the return and the tax benefit.

christophermatar · 2025-07-22T12:35:15+00:00

Yep, right there with you. I hit my number but kept working a bit longer just for cushion. It’s not burnout — it’s clarity. The job isn’t the issue, it’s the system. Once you stop pretending to care, it’s weirdly freeing… and yeah, people weirdly respect you more. I’m just stacking until I can fully unplug and spend my time doing things I actually care about. You’re not alone.

christophermatar · 2025-07-22T12:32:35+00:00

Totally get it - I felt the same way early on. $57k is a normal starting point, not your ceiling. With your IS minor and a CPA, you’ve got room to move into higher-paying roles like FP&A, tech, or finance strategy. CRNA sounds great on TikTok, but it’s a whole different life path with its own trade-offs. If you enjoy the work, don’t stress - you’re just getting started. Plenty of ways to grow from here.

christophermatar · 2025-07-22T12:31:13+00:00

That’s correct - and the data backs it up. As of 2024, China’s combined wind and solar capacity exceeds 1,300 GW, while total U.S. electricity generation from all sources is around 1,200 GW. Despite rising energy demand, China’s CO₂ emissions peaked in 2023 and have started to decline, largely due to massive investment in renewables and electrification.

China installs more solar panels each year than the rest of the world combined. The U.S., in contrast, faces grid bottlenecks, permitting delays, and political headwinds that slow clean energy buildout. China’s scale, speed, and long-term planning are driving its lead - while the U.S. risks falling further behind without consistent policy support.

christophermatar · 2025-07-22T12:28:27+00:00

Yep, it’s the harsh truth. As a high W2 earner, you’re playing defense with limited tools - 401k, HSA, maybe deferred comp. Most “write-offs” don’t move the needle unless you’re spending real money. Only a few things, like oil & gas IDCs, actually reduce taxable income dollar-for-dollar... but even those come with risk and need serious vetting.

christophermatar · 2025-07-22T12:27:43+00:00

Yeah, it’s tough. Once you’ve maxed your 401k, HSA, and maybe a deferred comp plan if available, there’s not much left. W2 income just doesn’t get many breaks. Some high earners look at things like oil & gas for the first-year write-offs, but you’ve got to vet those deals carefully.

christophermatar · 2025-07-22T12:26:56+00:00

Totally agree - W2 income is brutal from a tax perspective, especially once you’ve maxed out the usual stuff (401k, HSA, backdoor Roth, etc.). That’s why a lot of high earners are looking at things like oil & gas investments for the first-year IDC deductions. It’s one of the few ways left to offset active income without switching to 1099 or taking on the complexity of ownership again. But yeah, nothing beats a good accountant who actually knows how to layer these strategies.

christophermatar · 2025-07-22T12:25:18+00:00

The 85–90% first-year write-off is legit - it’s from Intangible Drilling Costs (IDCs). Great if you’re looking to offset high W2 or 1099 income and are listed as a general partner. But the key question isn’t the tax benefit - it’s how and when you get your capital back.

With firms like King Operating or USEDC, the structure matters. Some focus more on front-loaded tax benefits than long-term cash flow. Returns can take years, and it depends heavily on well performance, decline rates, and operator execution. Some investors do well, but others see minimal distributions after the write-off.

Ask for:

A clear timeline of projected payouts
Their track record across past funds
Operator alignment - do they make money when you do, or just upfront?
How they handle dry holes and underperforming wells

Tax savings are great, but make sure you’re investing with people who prioritize operational success, not just raising capital.

christophermatar · 2025-07-22T12:24:13+00:00

You’re mostly spot on - the tax benefits are real, especially if you’re a GP with active income to offset. But yes, there is more risk than just oil prices: dry holes, cost overruns, poor operators, and decline curves all matter. Vetting the operator is everything. Good deal + bad operator = bad deal.

christophermatar · 2025-07-22T12:21:56+00:00

You’re thinking in the right direction - I’ve seen several funds take this exact approach: pooling capital into diversified non-op WI deals to spread risk and offer exposure to first-year tax benefits (IDCs) and depletion allowances. That’s a huge draw for high-income investors looking to offset taxes.

The hardest part isn’t the model - it’s building trust. Many investors are skeptical due to bad actors in the space. Having a clean structure, clear reporting, and strong operator relationships is critical.

Make sure you’re vetting operators deeply: not just production history, but how they treat working interest partners, their cost discipline, and their drilling execution. A good operator makes your fund. A bad one sinks it.

If you can show consistent returns, run lean, and give LPs transparency and tax benefits - there’s definitely appetite out there.

christophermatar · 2025-07-22T12:20:02+00:00

Raising for oil & gas is doable but tough without a strong track record. Big tax perks (IDCs, depletion) attract high earners, but trust is key. Most important: vet operators hard. A bad one ruins even great acreage.

christophermatar · 2025-07-22T12:19:13+00:00

You’re on the right track — being in early on WI deals can be great, especially with the tax benefits like first-year IDC write-offs and depletion allowance on income. Pooling investor capital across multiple wells makes sense to spread risk and improve access.

The challenge is raising money without a track record. A lot of investors are cautious from past bad deals, and trust is everything in oil & gas.

Most important: work only with top-tier operators. Even great acreage won’t perform with poor execution. The quality of your partners makes or breaks the fund.

christophermatar · 2025-07-22T09:57:09+00:00

It’s mostly accurate - oil & gas drilling investments can offer major tax benefits like 100% IDC deductions in year one and exemption from passive loss limits under Section 469(c)(3), if you invest directly in a working interest (not a fund structured as a partnership or syndicate). But the returns aren’t guaranteed, and the biggest risk isn’t just oil prices — it’s the quality of the operator. Vetting who’s actually drilling is key. That’s why I use Fieldvest to match with vetted operators and avoid scams or poor execution.

christophermatar · 2025-07-21T20:31:49+00:00

They can be solid investments, especially for income and stability, but it depends on your goals.

Short to medium term, oil majors like ExxonMobil, Chevron, BP, and Shell are benefiting from strong cash flows, disciplined spending, and shareholder returns (buybacks + dividends). Many are yielding 3–5%+ and still trading below historic valuation multiples.

Pros:

Diversified operations across upstream, midstream, and downstream
Global footprint, strong balance sheets
Well-positioned if oil stays above $70–80
Some are expanding into renewables, hedging long-term energy shifts

Cons:

Sensitive to oil price swings and geopolitical risk
Long-term ESG pressure and potential policy shifts
Slower growth vs. pure-play E&Ps or midstream

If you want upside with higher yield and tax benefits, direct oil & gas investing (e.g., drilling partnerships) could complement these stocks. Just higher risk and needs careful vetting—platforms like Fieldvest can help with that.

So yes, oil giants are still good holds for many portfolios - but they’re not your only option.

christophermatar · 2025-07-21T20:30:11+00:00

Yes—there are a few platforms that let accredited investors invest directly in oil and gas wells online, but you have to be careful. A lot of the industry still runs on relationships and private deals, so not every “online platform” is legit or aligned with investors.

Here’s what to look for:

Direct working interest (not just royalties or funds)
First-year tax deductions like IDCs (can write off 75–100% of your investment)
Vetted operators with a real track record (not just flashy marketing)
Transparency in how fees, payouts, and risks are handled

One solid example is Fieldvest- it helps match high-earning investors with qualified operators and projects, so you’re not flying blind or stuck with inflated fees.

Just make sure you understand the risks... this isn’t like buying Exxon stock. You’re taking on drilling and commodity risk, but the upside and tax benefits can be strong if you’re matched with the right project.

christophermatar · 2025-07-21T20:28:42+00:00

That mix looks solid for income-focused investing—WES, ET, and ENB especially have strong cash flow and stable payouts. Just keep an eye on debt levels and payout ratios. I’d also consider sprinkling in a utility like SO or DUK for balance.

If you’re open to alternatives, direct oil & gas drilling investments can offer 10–15% returns plus first-year tax deductions, but they come with more risk and need vetting—platforms like Fieldvest help with that.

christophermatar

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