Texas has a long-standing relationship with oil and gas. Since before Europeans colonized the area, Indians are said to have told explorers of its medicinal uses in the area. In July 1543, the Spanish explorer Luis de Moscoso Alvarado, wrote in a report that he and his men found oil floating on the top of the water and caulked their boats with it.
The first oil producing well in Texas was drilled by Lyne T. Barret in 1866 in Nacogdoches County. This well created a chain reaction that spurred an oil discovery movement that led to the great Spindletop discovery on January 10,1901. Spindletop began producing 94 percent of the state’s recoverable oil.
In 1930, the East Texas field opened to become the largest oil field in Texas. This caused a significant change in Texas economy as a switch from agriculture to petroleum became apparent. Texas would soon lead the United States in oil and gas production.
Texas produces 35 percent of all U.S oil and is the world’s largest oil producer. Newer technologies like hydraulic fracturing and horizontal drilling have revived areas such as the West Permian basin and oil juggernauts like the Eagle Ford Shale play keep oil discoveries and production on the rise. We have create resources for the various oil and shale formations in Texas as well as created pages on the different regions of Texas to help you get a better understanding of the state, and the investing opportunities included.
The Texas Oil Formations:
Eagle Ford Shale Formation
The Eagle Ford Shale ranks as the largest oil and gas development in the world. It had a $30 billion impact on the South Texas economy in 2012.
Cline Shale Formation
While this formation is still being developed, estimates for the Cline have been put the recoverable reserves at 30 billion barrels of oil.
Pearsall Shale Formation
This formation lies underneath the Eagle Ford Shale and has showed great potential as an oil workhorse.
Haynesville Shale Formation
The Haynesville Shale formation is one of the largest natural gas fields in the United States.
Barnett Shale (Newark, East Field) Formation
Widely believed to be the United State’s largest natural gas formation and is located in North Texas.
Bossier Shale Formation
Apart of the Haynesville Shale, this formation runs through East Texas and Louisiana.
As well as the different major oil cities of Texas:
Dallas / Fort Worth
As you can see, oil and gas drilling and production, along with the investing opportunities that come with it, will be in Texas’ future for a long time to come. With Texas being number 1 in the United States for oil and gas, investing in this state might have lower risks than others.
Learn everything you need to know with our free Texas Oil Investment Guide
Are you an investor interested in Texas oil wells and drilling opportunities?
Maybe you have been approached by oil operators, non-operators, brokers, or promoters trying to get you to invest. Or maybe you’re in search of the right opportunity to invest in. Either way, this page will help you get a better feel for the Texas oil scene, what to look for, and what to avoid.
Invest Directly in the Texas Oil Field Industry
Direct investment, rather than buying stock or shares, allows you to be directly involved with the company or project. The risk involved is higher than many other types of investment, but the rewards can also be much larger. The trick is finding the right company to work with and doing the due diligence required to qualify the opportunity and limit risk.
Who should I invest with?
Due to Texas’ large oilfield industry, there are numerous drilling outfits operating throughout the state. Some own their own leases and equipment, others don’t, and then there are the brokers and promoters.
You want to invest with oil operators that own the leases and drill their own wells. That is the most direct and transparent route because there aren’t any middle men and no one is making profit on your investment but you and the company.
How much should I invest?
The answer is as much as you feel comfortable with. After evaluating the investment with our oil company legit meter, decide your risk level then expect to be asked for a minimum of $15,000.
Remember, you must be an accredited investor to get involved in these types of opportunities and should only commit after proper research and risk acknowledgement.
For more reading on this topic, take a look at our “How Much Money You Should Invest in Oil Wells” article.