It wasn’t too long ago that the only way you could really strike it rich with oil was by owning land rich in oil or natural gas deposits already. But now, with Texas leading the way in shaping the economy of the oil industry for the nation yet again, a San Antonio lawyer can confirm that it’s true—you can “strike oil” with just a few clicks of a mouse. How? Crowdfunding.
No longer just for indie projects like less-sexualized girl dolls, or smartphones, or card and video games, crowdfunding has come to the oil and gas industry in a big way—it’s “for every Texan who has wanted to dabble in the oil and gas industry without a big commitment.” A concept which, for old hats, sounds like a contradiction in and of itself.
But the model is a fairly simple one, according to most any San Antonio lawyer scrutinizing it for flaws, and here’s how it works: websites like Crudefunders provide options to investors of several project sites that investors would be potentially interested in—drilling projects, producing companies, water companies, or royalties or productions. Putting up anywhere between $1,000 and $5,000 limits your risk so you’re not making a gamble with your entire life savings, and if the project is a success, you get returns based on that venture.
An oil and gas attorney like San Antonio lawyer Michael Hancock could verify that there’s nothing sketchy or illegal about the concept, though you’d want to make sure, as an investor, that the crowdfunding website through which you decide to fork over your money is reputable. At Crudefunders, for example, returns are promised to be “typically much higher than any kind of stock market investment.”
Still, some restrictions apply, so check the rules before you dive into the project. Going over the options with a San Antonio attorney well-versed in finances, securities, or oil and gas law like Hancock could save you from some costly mistakes. Crudefunders requires that you be a Texas resident, but if you qualify, you could “see returns in as little as 90 days,” and collect your “success fee once the project is successful.”
Sound too good to be true? It isn’t, while it lasts, though a San Antonio lawyer familiar with the oil and shale industry in the area helping you make your decisions would remind you that oil claims are often fraught with disputes, and that the market itself is highly volatile, so starting small isn’t a bad idea.
Striking it rich could be in your future, along with the accompanying sense of fame, since sites like Crudefunders encourages investors to get to know each other through “parties, grand-prix trips,” and even tailgates in the company’s RV. Now may be a good time to invest, too, as “the prices are low,” so “production costs are lower,” meaning your returns could be bigger, given the right investment. But there’s risk like in any investment industry, and this one is no different, so we always recommend that you do your financial and legal research beforehand.