oil and gas limited partnership

Definition

A type of limited partnership that focuses on the discovery, extraction, and purification of oil and natural gases. This type of limited partnership poses little threat to participating limited partners because their only risk is possibly losing the money they invested. They cannot be held accountable for any other issues that the partnership may have. The general partner, as in most limited partnership; absorbs the majority of risk. Available tax breaks for limited partners made this type of partnership popular during the 1980s.