According to the U.S. Energy Information Administration (EIA), the volume of crude oil production in the US grew by 5 percent in 2017, reaching 10.07 million barrels per day. The surge has translated into one of the most favorable times for accredited investors to put their money in oil and gas investments in Texas and other parts of the country. In this post, you’ll learn how the crude oil production in Texas is shaping up and what it means for accredited investors and high net worth individuals (HNWIs) who looking to multiply their wealth.
The record production in crude oil in recent years is driven primarily by the Permian Basin, which is one of the largest and most prolific oil plays in the U.S. The basin registers a production of around 3.2 million barrels of oil per day. It is expected that in the coming years, drillers would be pumping out enough crude oil from the Permian Basin to outdo some of the top oil-producing nations in the world.
Discovery of New Oil Play
In August 2018 oil & gas exploration and production company Torchlight Energy Resources struck black gold as they confirmed the presence of petroleum in the Orogrande Basin in West Texas. Since then, the firm has been making progress in the basin. Estimated ultimate recovery from Orogrande wells is 4-6 million barrels per section, with each section consisting of roughly 12 to 18 wells.
What’s in for Investors?
Lucrative crude oil wells open a floodgate of opportunities for energy investors in Texas. The state is already the epicenter of oil exploration and production in the U.S. and further discovery and development of oil fields give accredited investors additional exposure to one of the most promising oil markets in the world. This paves the way for investors to put their investable assets in oil and gas and get assured return on investment.
A step-up in oil production in Texas translates into the biggest advantage for investors – tax breaks. There’s an increase in tax-advantaged investment opportunities in the state. Development of new oilfields promises stable and long-term gains for investors in terms of tax shelter. HNWIs find such opportunities enticing as they offer a viable and sustainable way to get sizable tax benefits by investing their assets.
Interested in Texas Oil and Gas Investments? Talk to Us!
The activities of crude oil production in Texas are playing out well, fuelling a sharp growth in the exploration, drilling, and production of oil in the state. For HNIs and accredited investors, this presents unlimited opportunities to draw great returns on their investments, and at the same time, receive some great tax benefits. If you’re interested in energy investing in Texas, contact FIG Tree Capital Ventures to be a part of the oil resurgence. To speak with one of our investment consultants, simply call (866) 300-2170 or fill out our contact form.