Helping Investors Understand The Oil Market!
Alpman Ilker heads PIRA’s Natural Gas Liquids Group as the CEO. He joined the Company in 2013 after working for 4 years at GlencoreXsatrata – a firm that specializes in global commodities. He was a senior oil trader who focused on crude oil arbitrage across the world. Before working at Glencore, he worked at Chevron where he played multiple roles in the Company’s processes in crude oil marketing, refinery planning, design & engineering and trading. He completed his B.S in chemical engineering from California University, Berkeley and his MBA from the Texas University in Austin.
He says that many clients are now becoming aware of the oil investment market. He and his team have the sole objective to guide and consult investors in this direction. He says that when you are investing in oil, it is important for you to be aware of the different kinds of costs involved. He has outlined the two major costs in the form of tangible drilling costs and intangible drilling costs-
- Intangible Drilling Costs- These costs cover everything except the actual costs for drilling. He says that clients often are confused between tangible and intangible costs when it comes to drilling. Chemicals, labor, mud, grease and other items needed for drilling are considered to be intangible costs. These costs cover 65-80% of the total costs of drilling one well and are 100% deductible in the year when incurred.
- Tangible drilling costs- Tangible costs pertain to the actual costs of oil drilling. These costs are 100% deductible and should be depreciated over a span of years that is generally 7 years.
Small Producers and Exemptions in Tax
He goes on to say that small producers of oil often are benefitted with tax exemptions. This investment is known as depletion allowance. This is an advantage that is given to small producers and investors, he says.
Alpman Ilker says that several investors are now recognizing the lucrative prospects of oil investments in the world. He and his team of experts ensure that investors get the accurate knowledge they need when it comes to the investments of oil. PIRA helps investors get a true picture of the fundamentals of supply and demand. They also give their clients insights into the market so that they can make accurate decisions for their present and future needs!