Weather is a risk to be considered by oil players

Posted on Friday, July 17th, 2015 at 5:53 pm    

Although oil and exploration companies are always subject to the effects of volatile market prices and an empty well, they should also take into consideration another risk that can profoundly affect the profitability of their ventures – weather.

Over the years, global warming has caused many companies to experience earnings fluctuations due to erratic weather. For instance, a summer that is unpredictably cooler may cause a decline in demand for energy for space cooling. Warmer winter months, on the other hand, may decrease energy demand for heating. These variations may cause price instability, which could impact a company’s bottom line.

One of the advantages of selling your mineral rights is that you are freeing yourself up from these risks and are dropping them into the hands of the players who have the capital to survive great losses. To learn more about selling your mineral rights in Texas, speak with our team of brokers at The Mineral Auction by calling (512) 698-2802 today.


Are you really prepared to lease your mineral rights?

Posted on Wednesday, July 8th, 2015 at 6:54 pm    

If you hold on to your mineral rights by leasing them, you are engaging in a business that has its own unique dangers. The question is, are you really prepared to take on the challenges?

Volatile markets, strict federal and state regulations, and the likelihood of experiencing a dry well are just among the myriad of different risks oil and natural gas players face every day. Fortunately, these companies have the resources to tackle each of these risks without much damaging impact. For instance, oil exploration companies have the capital to effortlessly spread the risk of dry wells over large land areas, sometimes even across several states and countries.

By selling your mineral rights upfront, you are sparing yourself from the possible harm of engaging in a venture that won’t pay off. Speak with our team of mineral rights brokers at The Mineral Auction by calling (512) 698-2802 today to learn more about selling your mineral rights today.

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