Own your very own Texas oil well
The Lone Star State has always been willing to gamble on oil and gas drilling. The bets are big, and the latest boom has mostly been the work of companies and investors with plenty of capital. A new Texas company could change that. For a minimum investment of $80,000 you can own your very own oil well reported StateImpact Texas.
Oil Boom USA is a subsidiary of Nakoma Petroleum. The company says well ownership is an “unequaled tax shelter” and “exciting and fun” on their website.
But the idea has some experts concerned.
Michael Webber is the Deputy Director at the University of Texas’s Energy Institute.
He says oil well investing is “pretty good on the way up, but it could be pretty bad on the way down.”
“Usually a sign of the next peak coming is that people get most frenzied with their speculation and their investments,” Webber says. “All those people investing will help drive the boom even further, until it all collapses.”
It’s estimated each oil well in the Eagle Ford shale of South Texas costs between $5 and $10 million to drill
You can hear the conversation about owning your own oil well from StateImpact Texas here.