5 Fun Facts About the Permian Basin

The Permian Basin is not only rich with petroleum and natural gas deposits; it’s rich in history, too. Here are five facts about the Permian Basin you might not know. 

1. The Name 

The Permian Basin gets its name from the Permian geologic period which began 299 million to 251 million years ago. This time period is best known for its dramatic ending, when an asteroid struck Earth and wiped out the dinosaurs! Over millions of years, those extinct dinosaurs transformed into what we now call fossil fuels. 

Source: Encyclopaedia Britannica

2. Everything’s Bigger in Texas

We know that the Permian Basin covers most of West Texas and parts of Southeastern New Mexico - but did you know that it’s actually more than 86,000 square miles? In total, it’s close to 250 miles wide and 300 miles long. Just to give you an idea, that’s about the size of the entire state of North Dakota!

3. Lucky Strike

In 1923, the Santa Rita No. 1 struck major oil in the Permian on land leased from The University of Texas. So how did the first rig to strike oil in the Permian get its name? Turns out the rig was named after Saint Rita of Cascia - the patron saint of impossible causes. Proving to be far from an impossible cause, today the Santa Rita No. 1 rests on The University of Texas campus.

Source: Texas State Historical Association

4. History of Victory

Patriotism runs deep in the Permian. During World War II, the Permian had its share of responsibility in contributing to the winning war efforts of the Allied Forces. Wrap your head around this fact: About half of the world’s oil and gas production at the time came from the Permian! This supply helped in fueling the tanks, ships, and planes the Allied Forces used to ultimately win the war.

 Source: Drilling & Geophysics Society of Dallas

5. The Permian Today

Nationwide, the total oil rig count has risen to 883. Did you know more than half of those rigs are located in the Permian? If you stacked all the oil rigs in the Permian on top of each other, they would stretch almost 6 miles into the Texas sky!

Source: Baker Hughes Rig Count Data

Impress your friends and coworkers with these five surprising facts about the Permian.

Want to get in on the action? Check out jobs on RigUp and join us in our mission of empowering the people who power the world.

Tax Tips for Contractors

It’s tax season! RigUp is here to help.

Thanks to online marketplaces like RigUp, it’s easier than ever for people to work for themselves as 1099 independent contractors,  especially in industries like oil & gas.

With the great freedom of contract work, however, comes the great responsibility of 1099 taxes.

We recommend speaking to a tax professional when preparing your taxes to make sure you’re getting as much of your hard earned money back as possible.

 In the meantime, here are some industry tips to help you get the most out of your taxes with the least headache possible.

PREPARE FOR TAXES

Separate Your Accounts

 Separate your business and personal accounts from the beginning of the year, so you can easily calculate deductions.

 Pay Your Quarterly Income Taxes

 Pay your quarterly taxes - also known as “estimated taxes” - on time. W-2 employees have income taxes withheld for them on every paycheck. When you’re self-employed, you’re responsible for this task. The government requires quarterly payments from 1099 workers to make sure you’re keeping up with your taxes throughout the year. Contract workers can easily pay quarterly taxes directly through the IRS website. Monthly payment options are also available for the budget-challenged. Take note that your quarterly payments are due on the following dates:

  • 1st quarter – April 15th
  • 2nd quarter – June 15th
  • 3rd quarter – September 15th
  • 4th quarter – January 15th

 Save For Your Self-Employment Taxes

 Set aside around 15% of your total earnings to cover this tax that encompasses your cash contributions to Medicare and social security. W-2 workers make these payments automatically, and their employers pay half. As a 1099 employee, you’re required to pay this full amount yourself - so be prepared!

 Estimate Your Total Taxes

 Use a 1040-ES to estimate the total you’ll need to pay for the quarter. It only takes about 10 minutes to complete the worksheet.

 Contribute to Your Savings

 Keep a savings equal to at least a year of unemployment, if you can. It’s just good practice in the industry. Also, open a separate account just for your tax payments. Transfer 25% of each month’s earnings into this account.

Contribute to Your Retirement

 As a self-employed person, you have the ability to fund thousands to a SEP (Simplified Employee Pension) or a Solo 401(k) in a tax deductible manner.

KNOW YOUR TAX CREDITS

 Find out which credits you qualify for. Some common credits include:

  • Child & Dependent Care Credits

  • Lifetime Learning Credit

KNOW WHAT YOU CAN DEDUCT

 Make sure you look closely at your ability to claim the following common expenses for your independent contract work on the oilfield

  • Supplies, including rented and leased equipment

  • Uniforms, protective clothing, and safety gear

  • Fees for services you’re required to maintain

  • Internet, phone, and satellite radio services

  • Interest on business loans and credit cards

  • Drug tests & required medical exams

  • Trade publication subscriptions

  • Vehicle expenses and mileage

  • ATM & check reorder fees

  • Home office expenses

  • Continuing education

  • Association dues

  • Travel & Parking

  • Insurances

  • Postage

KNOW WHAT YOU CAN'T DEDUCT

 Don’t try to deduct the following expenses. This could lead to an audit and a costly headache.

  • Expenses reimbursed by employer

  • Time incurred working on your own equipment

  • Income lost for dry runs and unpaid mileage

  • Utilities not used for business purposes

  • Personal vacations

  • Everyday clothing

  • Commuting costs

  • Downtime

HIRE A PROFESSIONAL

 Remember that it’s always best to work with a CPA when preparing your taxes.

For more info from the IRS, click here.

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