Frequently Asked Questions
Working with Pipeline Oil & Gas
I want to invest with Pipeline Oil & Gas. How do I get started?
Give us a call at 602-620-8272 or click here to schedule a meeting at our Phoenix-based office. Our investors are our partners, so we’ll want to be sure the relationship and investment will be a good fit for both of us. We’ll begin by discussing your financial goals, assessing your level of risk and determining if you qualify as an accredited investor.
What is an “accredited investor”?
The federal securities laws define the term accredited investor in Rule 501 of Regulation D as a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; (or) a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person; (or) a charitable organization, corporation, or partnership with assets exceeding $5 million; (or) a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.
Why should I invest with Pipeline Oil & Gas—can’t I just buy stock in BP or Exxon?
Investing with Pipeline Oil & Gas is very different from investing in the stock of a major oil corporation. When you invest with us, you invest directly in oil production. You’ll own a portion of the LLC associated with the project site. With a working interest, you’ll benefit from numerous tax breaks for small oil producers as well as monthly revenue from production and profits from the final sale of the asset.
When you invest with us, your return on investment (ROI) depends solely on the productivity of the project site—which we can control more easily thanks to proven methods, unparalleled technology and seasoned leadership. But when you buy stock in a major oil company, your ROI depends not only on the successful management of that company but is also subject to a litany of external factors that are less easy to control, including public perception.
How quickly can I expect to see a return on my investment?
The tax incentives associated with oil investments make it possible to see returns within your first year. Because each of our projects is a functioning, productive site before investors ever get involved, you will also start to receive monthly production checks almost immediately.
I prefer to keep my money liquid. Should I still invest with Pipeline Oil & Gas?
Our investors enjoy the flexibility to determine whether they want to focus on a short or long-term exit strategy. They may choose to participate in the entire life cycle of a project, benefiting from several price increases as the site becomes more productive and then profiting from the sale of the asset to a larger institution. Or they may choose to exit a project before the typical 12 to 24 month timeframe elapses. We offer investors the opportunity to exit a project at any time without penalty because we understand that liquidity is important to them.
Once I join a project, how will Pipeline Oil & Gas keep me informed?
We provide transparent communication through a variety of sources including email newsletters, mailed reports, our website & social media pages. Investors also have access to our 24-hour online project monitoring system, Tank to Cloud. You’ll be able to monitor the success of your investment constantly, and you’ll always be in the loop on Pipeline Oil & Gas’s latest projects.
We also invite you to tune into 1510 AM Money Radio’s #1 oil and gas investment show Crude Awakenings, hosted by Pipeline Oil & Gas Founder Brandon E. Cox.
What is Tank to Cloud?
Tank to Cloud is an online reporting system that allows investors to monitor their investment remotely. Sensors at our project sites transmit production data to the Tank to Cloud website, detailing the ratio of oil to water produced at each site. The system is available 24 hours a day and provides periodic updates. It’s available via smart phone, tablet and PC.
Our strategies for success
What makes the Pipeline Oil & Gas business model unique?
While there are many companies that offer the opportunity to invest directly in oil and gas production, our business model is unique because we “flip” underperforming oil wells, reengineering them to maximize productivity. After 12 to 24 months, we sell the high-value project site at a profit. We believe the resale of a property delivers the highest financial rewards. This “fix n’ flip” model is also unique in that it offers a clear-cut exit strategy.
How long does it take to sell a project site?
We target a sale at around 12 to 24 months.
Who is the typical buyer of a project site?
The buyer of a project is typically a large institutional investor or a large oil company.
Why does Pipeline Oil & Gas target drilling sites in the Southern United States?
You may have heard that North Dakota’s Bakken Shale is one of the richest sources of domestic oil. While that’s certainly true, we choose to focus our efforts on the Southern U.S. where there are hundreds of thousands of available wells. Drilling in the South offers distinct cost-saving advantages.
Our production costs average $30 to $35 per barrel. With oil selling at around $100 per barrel, our investors make a nice profit—even if the price of oil drops. But in the Bakken Shale, the same barrel of oil costs about $60 to produce. We produce the same asset at a great savings.
Oil production is more expensive in the Bakken Shale because, at a depth of about 10,000 feet, reserves are more difficult to reach. But in the South, oil is found much closer to the Earth’s surface. We target wells of approximately 2,500 feet in depth, and with rock formations in this region being more porous, oil production is less risky and more cost effective.
Benefits of investing in oil
Why invest in oil?
The United States is experiencing a modern day oil boom. Recent technological advances in drilling have made it possible for exploration & production companies to access oil and gas reserves that were previously difficult or impossible to capture. The technology has unlocked a wealth of opportunity across the country, allowing smart companies like Pipeline Oil & Gas to target prolific oil-producing sites across the country for reengineering and new development.
Oil and gas prices may fluctuate, but the demand for oil isn’t going away any time soon. The International Energy Agency and The Organization of Petroleum Exporting Countries (OPEC) estimate the current world demand for oil at about 90 million barrels per day. While the United States demand for oil may drop whenever prices increase, there is a strong demand for oil in developing nations—and it’s only expected to increase.
What are the tax benefits of investing in oil?
No other investment in America offers as many tax incentives as oil and gas production. The United States government is highly invested in domestic oil because it hopes to become energy independent in the near future. As a result, the Tax Code provides numerous advantages for investors in the hopes of stimulating domestic production. Many of the costs associated with drilling are 100% deductible in the first year of investment.