The “volume risk” associated with leasing your mineral rights

Posted on Monday, March 30th, 2015 at 4:01 pm    

With the country’s oil and natural gas boom, many mineral rights owners believe that leasing their rights would allow them to reap the most over the long term. However, leasing your mineral rights for royalties has its share of risks that could even be greater compared to the risks associated with selling your rights all together.

One known risk of leasing your mineral rights is the “volume risk.” While it is true that some wells live a long time, others might not. Over just a short time, those working on your land might find that the lease is not worth the cost of production. At this point, companies will often abandon the wells and your revenue will cease. However, if you choose to sell upfront, then you retain the larger initial payout and the risk of a low-yielding well shifts to the buyer.

To learn more about volume risks with leasing versus selling your mineral rights in Texas, our team of expert mineral rights brokers at The Mineral Auction can answer all of your queries. Contact us at (512) 698-2802 today to learn how to get the most out of your mineral rights.


Texas oil and natural gas industry pays record taxes, royalties

Posted on Monday, March 16th, 2015 at 1:57 pm    

The skyrocketing energy production in Texas allowed the state’s oil and natural gas industry to pay record-high amounts in taxes and royalties last year, a report by the Victoria Advocate stated on February 24.

Data released by the Texas Oil and Gas Association showed that the state’s oil and gas industry has contributed $15.7 billion to the state in terms of royalty payments and taxes. Association president Todd Staples said these payments are being used to fund schools, children’s health insurance, and public services, among many other important community projects.

The report further added that the state’s vibrant energy sector directly employs 418,000 Texans, while indirectly providing jobs for another 1.8 million individuals across the state.

Indeed, the continuous growth of Texas’ oil and gas industry benefits not only its direct stakeholders, but also the community in which it thrives. If you want to know more about how to benefit from this boom by selling your mineral rights, the team at The Mineral Auction can help you. Call us at (512) 698-2802 to learn more about selling your mineral rights for the highest value possible.


Why Texas is the best place to be for oil exploration and production

Posted on Monday, March 2nd, 2015 at 3:39 pm    

Over recent years, Texas has been among the most attractive places to explore and invest in petroleum, coal, oil, and natural gas. Investors and other major players in the energy business continue to eye the state as a place where the energy sector’s full potential for growth and revenue could be realized.

Rich energy reserves are Texas’ greatest comparative advantage. According to the U.S. Energy Information Administration (EIA), Texas has the highest crude oil reserve in the country, and is also its number one producer. The EIA added that nearly a third of the top 100 gas-producing fields in the country are located in Texas. When it comes to coal production, Texas ranks first among the largest producer of lignite, a type of coal used to generate power.

These are just a few of the many reasons why investors continue to capitalize on Texas’ energy sector. If you want to take part in this economic trend by selling your mineral rights, our team of mineral rights brokers at The Mineral Auction can help you make the most out its value. Call us at (512) 698-2802 to know more about our services.

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