Technology Creates Oil and Gas Investing Opportunity
Insider insights into the South Texas oil boom
Since the mid-80s, there have been spectacular advancements in technology that make gas and oil investing not only more prolific but more cost-effective. In fact, thanks to these advancements, a single oil well can often produce twice as much or more as an oil well could have produced in the 80s. Not only is gas and oil investing less risky because of advancements in seismic technology, but gas and oil investing is now more profitable because of increases in productivity, advancements in extraction technology, and the ability to better pinpoint precisely where to drill.
Hydraulic fracturing, also known as “fracking”, is the process in which water, sand, and other materials are injected into underground rock formations at high speeds to free pockets of fossil fuels. This relatively new advancement has allowed previously inaccessible petroleum products to become accessible. This means that existing oil and gas wells that were formerly considered to be depleted now deserve a second look thanks to better extraction technology.
More than that, however, fracking has opened up new opportunities around the country in areas where, before this technology, it was virtually impossible to access the pockets of oil and gas. Predominantly found in shale formations in Ohio [Marcellus], North Dakota [Bakken] and South Texas [Eagle Ford], this new technology is revolutionizing the energy industry and has literally created an oil boom even more exciting than the original boom of the 1800s.