Every industry has its difficulties. For business owners in Texas looking to break into the oil and gas industry, they may have a lot on their plates. Certainly, finding success in this industry could prove immensely lucrative, but it is important to have the right information first.
Business owners may first want to determine what segment of the oil and gas industry they want to tackle. The three main segments include upstream, midstream and downstream. If an individual is interested in the exploration and production of these substances, the upstream segment may be right for the company. However, this segment does have high risks and can take a lot of time because of the steps necessary for finding drilling locations, leasing and determining mineral title ownership, permitting of wells, and the actual drilling. Knowledge is key in any field and there are many skills necessary to be successful in an upstream market.
The midstream segment works to transport the raw materials for refining. As a result, these companies work to ship and store raw materials, and their success can hinge on the successes of upstream companies. Midstream commonly carries product by pipeline or other means of transport, but delivery of the product is the key to success in the midstream market. Lastly, the downstream segments work to actually refine the oil and gas. They remove impurities and prepare the substances for use by the public.
Determining the right oil and gas segment for a business is only one of the first steps toward getting into the industry. Plus, there are a lot of legal hoops to jump through, and any misstep could be detrimental to a business. Fortunately, interested parties can work with experienced Texas attorneys who understand this industry and what it takes to stay compliant with the law and to protect the company’s interests when making any type of transaction. Whether counsel assists with the creation of an entity, the permitting process at governmental agencies, title examinations, or resolving legal matters in or outside the courthouse, having an attorney with experience matters.