Those who lease mineral rights threatened by fluctuating prices

Posted on Monday, April 13th, 2015 at 3:37 pm    

Some mineral rights owners are tempted to lease their mineral rights due to the promise of long-term returns. However, the fast-changing landscape of the oil and natural gas sector may cause the value of your mineral rights to dwindle. Something that may risk the profitability of your mineral rights could be the fluctuating price.

The value of mineral rights is subjected to the fluctuating prices of oil and gas on the market. Oil prices may vary depending on several factors, such as local and global changes in the supply and demand, market sentiment, and even politics and public policies. Although the fall in oil prices primarily benefits consumers, it may have a negative effect on oil explorers and drillers who spent a lot of resources and are in considerable debt for contributing to the oil and gas boom. Oil companies in debt are in turn reluctant to expand their oil and natural gas portfolio, which greatly affects those who own mineral rights.

Those who sell their mineral rights upfront to interested oil explorers have a decreased chance of being affected by the price changes and are therefore more likely to benefit than those who chose to lease their mineral rights.

By selling your mineral rights, you are sure to secure the best of what your property can offer today. Our brokers at The Mineral Auction can help you sell your mineral rights at the highest possible value. Call us at (512) 698-2802 to get help today.

Recent Mineral Rights Posts

Jul
22
Understanding How Mineral Rights Work in Texas

Mineral rights are a complex and important aspect of property ownership in Texas. They refer to the ... Read More

Aug
31
Ownership of Mineral Rights: How do I know who owns the rights? How do I go about selling them?

If you are a property owner in an area that has precious resources like oil, gas, or minerals, you m... Read More

Jan
09
Who might buy your mineral rights

Selling mineral rights is much more different than selling most items or property. It goes further t... Read More

Ready to get started? Call us today - (512) 698-2802