If you are thinking of investing in oil and gas, Texas is most likely at the top of your list of possible locations for your investment. With Texas having the most proven reserves in the United States as well as being the top producing state in the country, Texas account for one-third of all oil produced in the entire United States with a whopping 9.6 billion barrels of proven reserves and 3.4 million barrels produced daily. Texas leads the United States in almost all aspects of the oil industry and would be the sixth largest oil producer in the world if it were its own country.
Oil Cities of Texas
With Texas being the top oil producer in the nation, it is no surprise that the history and economies of most Texas cities were created around the discoveries of oil fields. Many of today’s top oil companies have the Texas Oil Boom to thank for their beginnings.
Beaumont Texas was formed in 1824 when Noah and Nancy Tevis created a farm near the Neches River. A small community formed around the farm. By 1835, Beaumont was thriving on being a successful regional shipping center. By 1880, it had become a very active river port was served by all the major railroad systems.
Oil in Beaumont
The modern age oil boom was born in Beaumont, Texas on January 10th, 1901. The Lucas No.1 oil well that was estimated to recover 5 barrels of oil a day, struck oil and began producing 100,000 barrels a day. These production numbers were the highest ever seen in Texas, let alone the entire United States. This discovery led to the Lucas No. 1 oil well producing more oil per day then the rest of the United States combined!
Today in Beaumont, Texas
With modern technologies such as horizontal drilling and hydraulic fracking, oil companies are creating another oil boom around Beaumont, Texas. These new methods of drilling can help them tap areas that were thought to be unreachable in the first Texas Oil Boom. With Beaumont, Texas being the birth of the modern oil age, it could be a very serious contender for investing.
Before handing any amount or a signed check to an investment broker or an oil company, you also need to consider beforehand the investment you want to make so you are better equipped in facing the risks as well as ensure that the investment is real and legitimate. In the oil and gas investment game, risks are inherent. As with any other investment vehicle, you need to properly evaluate the investment before making any decision.
An investor needs to know what are the risks involved in making an investment commitment and what he can do to offset these risks with more returns and benefits. In terms of risks, some of the most important consideration that you should look into is the company’s track record and profile. Due Diligence is key to making sure your investment dollars are well spent.