When you come across or get offered the opportunity to invest in oil, it is important to carefully consider the prospect before you take out your checkbook. Of course, oil investments are legitimate and oil operators are licensed to drill oil wells. However, we can’t deny the fact that there are also fly‐by‐night operators, scamming brokers, and middlemen who would pressure you to take their offer in exchange for empty promises. Identifying these shady dealers early on is as equally important as deciding where to invest your capital be it in Shreveport or elsewhere.
Finding the Right Investment Broker
No matter how tempting an investment offer can be, you should still be careful who you say “yes” to. In most cases, a fraudulent and scamming oil operator or broker would give you high‐pressure sales pitches. Tempting as they may sound, you can check through different sources whether an investment opportunity is real and legitimate, and not something that’s just too good to be true.
You can go to the official websites of the Securities and Exchange Commission and FINRA to see if an oil company is duly licensed by the state and if there had been official complaints filed against the company.
Expert Advice on Oil Investment
Furthermore, if you are interested in investing in Shreveport but do not know much about the industry, you can get expert advice from lawyers and financial analysts to give you more clarity on the legal and financial dilemmas that you may have. You may also ask to see the company’s licenses, bonds and other documents that would prove its track record and experience in oil well drilling. The oil and gas investment requires a huge sum of money, so it is always best to research on the investment carefully before making any decisions.
Although the first oil reserves in the US were discovered over a century ago, it wasn’t until the 2000s when Americans really began enjoying their own source of oil when the South began expanding their drilling operation, which Shreveport is no stranger to. Previous drilling technologies were able to unearth oil and gas from the American underground, but these technologies were not enough to tap the tighter oil plays which hold generous amounts of oil. But that was not until hydraulic fracturing and horizontal drilling were introduced. The merger of these two technologies made drilling for oil more effective, safer and quicker. Utilizing the most recent technology, these two methods have been optimized to easily locate oil reserves and prevent drilling on dry holes.
Oil Drilling in Shreveport
Hydraulic fracturing injects chemical pressure that causes for rock formations to crack underground and encourage the free flow of oil and gas to the surface. Horizontal drilling, on the other hand, is nothing like the conventional vertical drilling. This is done by placing drilling pipes horizontally along with the target formation. With the use of more advanced sensors, radars and computer drilling software, the drilling process through fracturing and horizontal drilling has just gotten better.
The American oil boom would never have taken place if these two methods were never discovered and used in the first place. Today, the United States has been making oil than ever before and employing more people in oil-dependent industries. Now with the ability to tap oil reserves which were impossible to drill in the past, Americans are likely to enjoy their own oil for the several decades to come.
Protect Your Investment
Oil & Gas investing is a lucrative field where you can net multiple times of your initial stake, but it can also be just as risky. When looking for a investment broker or company in Shreveport, be sure to perform your due diligence and fully vet your potential partner before signing on the dotted line. We’ve compiled a FREE Insider’s Guide to Oil & Gas Investing that gives you insight on the ins and outs of the industry and includes a free Legit Meter to help you validate the legitimacy of the investment opportunity.