The Push For Future Investments in Oil

[Posted on June 17, 2014 by Michael L. F. Slavin]

Requiring approximately as much as the European Union and China combined, the United States is far and away the world’s largest consumer of oil. As affordable local fuels are made available, US manufacturing becomes cheaper, which can in turn create billions of dollars in new investments in oil wells and equipment around the nation. Because energy is what fuels industry and consequently job growth, maintaining a supply of affordable energy is a national interest that affects nearly every person on the planet.

In the center of this massive push for oil investment is Texas. As America’s largest domestic producer of oil and gas, in many ways, Texas is an engine of the American economy. The immediate beneficiaries of this oil boom are the industrial and residential sectors of Texas, which are starting to see global investment to prepare for the imminent rise of Texan oil. And that’s just the tip of the iceberg as to why so many investors are getting excited about the recent push to invest in the oil and gas industry in Texas.

Texas Oil Production is Up

According to the U.S Energy Information Administration, oil production in Texas during 2009 averaged approximately 1 million barrels a day. As of March 2014, oil production was up to 2.6 million barrels, an approximate value of $110 billion annually. And that may be just the beginning. The Texas Railroad Commission, the body responsible for overseeing the production oil, coal, and natural gas in Texas, estimates that the state is on track to produce as many as 5 million barrels daily by 2032.

To put that in contrast, if Texas was a separate nation, today it would be the 9th largest oil producer in the world. Texas has even surpassed national oil giants like Venezuela, Mexico, Brazil, Kuwait, and Nigeria. And if current projections hold true, Texas will only continue to climb the list.

The oil boom is in no small part thanks to the Texas Permian Basin, which is one of the world’s largest reservoirs of oil in the world. Utilizing some of latest industry techniques, like hydraulic fracturing, 3D seismic, and horizontal drilling, it has become easier than ever to retrieve the wealth of natural energy stored deep under Texas soil. Best of all, local experts like US Emerald Energy have managed to extend these incredible investment opportunities to individuals, enabling the entire nation to participate in the push towards national energy independence.

Investing in Oil

From the perspective of investors, oil remains one of the surest bets you can make. The national demand for energy cannot currently be met by any alternative energy sources. Because demand is all but certain to remain steady for decades to come, oil is a fairly low risk investment. The crucial importance of oil on the US economy also means there are special tax benefits for those who invest. An investment in oil and gas is an investment in the long term infrastructure of the nation, which is why the American government has created so many incentives for investment. Most notably, congress has allowed up to 15% of investments in oil to be free of income tax, and entirely tax deductible.