Investment Grows in Oil Projects Offered in Crowdfunding Platform
The passage of the JOBS Act and oil price downturn proved to be good things for Crudefunders, an online crowdfunding portal that offered direct investment in oilfield projects.
Last year, Rigzone spoke with Crudefunders in an article that explored the potential of crowdfunding in the oil and gas industry. Since that time, a lot of changes have happened at Crudefunders, David Taylor, co-founder of Crudefunders, told Rigzone.
The JOBS Act, which took effect May 16 of this year, allowed Crudefunders to offer investment opportunities across the United States to investors who lived around the country. Prior to the JOBS Act, Crudefunders had operated under an intrastate exemption, meaning that only Texas-based companies that had 80 percent of their revenues originating in the state and Texas-based investors could participate in the platform.
The passage of the law meant the company had to undergo some changes, as the law didn’t allow for a company to operate on an intrastate and an interstate basis. Crudefunders decided to shift to interstate operations, which meant it had to undergo some changes. These changes included redesigning the back of its investment portfolio and adding a new board of advisors. Taylor told Rigzone that the changes have been tough, but fortuitous in the end.
When Crudefunders first started as an intrastate crowdfunding platform, the company had between 1,000 and 2,000 investors. In a year and a half’s time, the company’s investor database has grown to 4,200, Taylor said. One thing that Taylor considers amazing is that the company didn’t have to close up shop when oil prices declined. Instead, the oil price downturn saw saavy investors take an interest in investment opportunities on the Crudefunders site.
Crudefunders’ investor base if far from homogenic. In fact, many of the investors are women. He believes that many of these investors work in the oilfield and have always wanted to invest in what they’re doing.
Investors have shown a great deal of interest in the Permian Basin, but opportunities still exist in oilfield operations near Houston, in East Texas and in the Eagle Ford, Taylor stated. Investors can put as little as $1,000 into a project and as much as $50,000.
Crudefunders is now in the midst of its first interstate project. Taylor’s goal for the company is to offer one project a month for the next four to five months, and ultimately, to offer one new project a week.
The company is agnostic when it comes to the operator, he said, adding all they have to do is pass a rigid securities background check, and demonstrate productivity and effective economic models.
“Getting more projects out is great, but we also want to focus on quality,” Taylor commented. “Success begets success. As long as projects do well and people are satisfied, it will grow.”
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- McDermott Settles Reficar Dispute
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension