Beggar's Oil was recorded at Long View Farms Studio from Feb 6 - Feb 13, 2001, during the same sessions that produced Sky Like a Broken Clock. Phelps' first releases were essentially his voice and the voice of his slide guitar. He assembled a band and put aside the slide guitar to focus on his fingerpicking style. "Lass of Loch Royale (If I Prove False to Thee)" was recorded live at the Kuumbwa Jazz Center in Santa Cruz, CA on November 20, 1999. The title track is the same as found on Sky Like a Broken Clock.

Music critic Chris Jones of the BBC Folk/Country Reviews wrote, "Simply, this record brings us true tales from the barren outposts of the human heart. A genuine original."