What happens over three million times a day? According to a 2018 Fortune article, the answer can be found in the Texas and New Mexico Permian Basin.
Oil and Gas Production.
“Oil production in the Permian soared to 3.2 million barrels per day in May. And it helped push total U.S. production above 10.2 million barrels per day in February …, according to the U.S. Energy Information Administration (EIA). In April, an average of 449 rigs were drilling holes in the Permian, according to market-data firm Baker Hughes.” Fortune’s, “Lone Star Rising”
Oil and Gas Investment.
And, where there’s black gold, there are investment opportunities. The problem with investing in oil and gas production is not only drilling a dry hole, but also running afoul of oil and gas fraud schemes. When one of my friends sent me an article touting a recent $1.4 trillion oil find in West Texas, nick-named, “America’s Crown Treasure,” I couldn’t help donning my skeptical cap. Apparently I am not alone. Travis Johnson’s, Stock Gumshoe opinion piece outlines several red flags related to an oil and gas stock trade.
Advertising copy using “Treasure Trove,” “Mother Lode” and “play your cards right,” automatically ring my oil and gas investment scam meter. Could it be because I’m an oil and gas litigation lawyer? To be clear, there may be legitimate opportunities associated with this Chihuahua Dessert find. Many a West Texas property owner has acquired a steady stream of income from oil and gas royalties. Unfortunately, even more investors have sought the counsel of an oil and gas fraud lawyer when an investment went awry.
Drilling started in the Permian Basin back in the 1920’s, but fracking technology over the last ten years has made it possible to drill in the tight Permian Basin shale. Baker Hughes estimates 60 to 90 million more barrels of recoverable oil are left in the Basin, making the field wide open for legitimate players and fraudsters.
There’s more than one way to make money in towns like Midland these days. The price of hotel rooms has tripled, and the labor shortage has driven wages as high as a West Texas mountain top. If your dream is to run a food truck, now’s your chance. Just be aware you’ll need to bring an RV for sleeping and living quarters.
Roads and Pipelines.
Growth has its costs. The highways are clogged with trucks carrying all things oil related, converting the wide open Texas roads to over-crowded and deteriorating mine fields. But October brought good news reported by Irina Slav at OilPrice.com. “Kinder Morgan has secured commitments for the Permian Highway pipeline to begin construction.” That pipeline will be welcomed relief in West Texas, and make it possible to keep drilling.
With so much going on in the Permian Basin, it’s hard to know what investments are legitimate. Whether you are an oil and gas services’ company, an oil and gas investor, or you need an oil and gas litigation attorney, we are here to help.
5080 Spectrum, Suite 850E
Addison, Texas 75001