How Is Natural Gas Extracted?

Natural gas is one of the most important energy sources in the world today. It heats homes, cooks food, and powers factories across the globe. But where does this fossil fuel come from, and how are natural gases extracted? 

Keep reading to learn how natural gas is extracted from the ground and how landowners can make informed decisions about their mineral rights.

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Key Takeaways

• Natural gas extraction uses several different methods, depending on where the gas is located underground.
• Conventional drilling works for natural gas deposits that are easily accessible.
• Hydraulic fracturing (fracking) and horizontal drilling release gas that’s trapped in tight rock formations.
• The Mineral Auction can connect landowners with qualified buyers through a transparent auction process that maximizes the value of mineral rights.

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Methods for Extracting Natural Gas

Most natural gas produced in the U.S. is extracted domestically. The process of gas extraction depends on where the natural gas formed underground and what type of rock formation holds it. Companies use different techniques to bring raw natural gas to the earth's surface:

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Conventional Natural Gas Production Methods

Conventional natural gas deposits sit in large underground pockets within porous rock formations. Vertical drilling is the simplest way to extract this gas. A drill rig creates a straight hole down into the ground until it reaches the gas reservoir. Once the drill reaches the natural gas deposit, steel pipes called casings are installed and the gas is extracted through them.

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Hydraulic Fracturing 

Hydraulic fracturing (also called fracking) is a modern method used to extract natural gas from tight rock formations like shale. Fracking starts after a well is drilled into the rock formation containing the shale gas. High-pressure pumps push a mixture of water, sand, and chemical additives down the well. This pressure releases the natural gas that’s contained in the rock.

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Horizontal Drilling

Horizontal drilling is an innovative technique that works alongside hydraulic fracturing to access more natural gas with fewer wells. Instead of just drilling straight down, the well starts vertically but then turns to drill sideways through the rock layer that contains the gas. This method allows companies to reach natural gas across a much larger area from a single drilling pad on the earth's surface.

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Coalbed Methane Extraction

Natural gas occurs naturally in some coal deposits. Companies can drill into coal seams and reduce the pressure to release methane trapped in the coal. This method sometimes uses water pumping or limited hydraulic fracturing.

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Associated Gas Recovery 

When drilling for oil, companies often find natural gas sitting on top of an oil reservoir. This associated natural gas can be captured and sent through natural gas pipelines or processed on-site.

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Enhanced Gas Recovery

In older wells where production has slowed, companies inject gases like carbon dioxide or nitrogen into the formation. This maintains pressure and pushes more natural gas toward the production wells, extending the well's productive life.

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Will the Method of Extraction Needed Affect My Mineral Rights Value?

There are many factors that can play a role in the value of your mineral rights, and while it’s possible that extraction methods could become a part of a negotiation, this is unlikely to be a major value influence for a few reasons. Most importantly, experts have weighed in that in countries with fewer conventional deposits remaining, investment in unconventional natural gas extraction is a major market. This means that the United States' unconventional deposits are staying competitive with conventional extraction sites in the Middle East.

While the extraction method may be less important, one aspect of your mineral deposit that may influence the value of your rights may be whether the deposit is wet or dry. Wet natural gas is a combination of natural gas liquids, like propane, and water vapor. While it can be more complex to have wet natural gas processes, this gas may be worth more because natural gas liquids are particularly valuable.

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How to Find Natural Gas on Your Land

Many landowners wonder if their property sits on top of valuable natural gas energy deposits. While you cannot see natural gas thousands of feet below ground, several practical steps can help you determine if your property has potential:

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Get Legal Documentation

Before exploring, verify that you actually own the mineral rights to your property. Many landowners discover that previous owners sold or retained mineral rights separately from the surface land. Knowing your legal standing prevents costly mistakes and allows you to benefit from any natural gas discovered on your land.

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Conduct Local Research

Check if your land is located near existing gas wells or proven gas fields producing natural gas. Review county records for historical drilling activity and contact your state's geological survey office for maps showing known gas formations.

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Hire a Professional Geologist

Professional geologists have the training and tools to accurately assess your land's potential. These experts interpret complex data that reveals where gas might be trapped. 

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Collect Soil and Rock Samples

Physical samples from your property can provide clues about underground resources. Geologists can examine soil composition to identify substances associated with natural gas deposits.

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Look for Surface Clues

Some surface features can indicate underground gas deposits. For example, this might include natural gas seeps that reach the surface. However, these signs are rare and not definitive proof, so professional surveys remain important.

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Should You Sell Your Mineral Rights?

Once you know enough natural gas exists on your land to be valuable, you may wonder if you should keep your mineral rights or sell them. Although this decision depends on your financial goals, risk tolerance, and personal circumstances, some of the reasons to sell mineral rights include:

• Immediate Cash Payment — Selling your mineral rights allows you to receive a lump sum immediately instead of waiting years for uncertain royalty checks that depend on production levels and fluctuating natural gas prices.
• Eliminate Market Risk — Selling your mineral rights protects you from the unpredictability of future natural gas prices, production declines, and changing energy policies that affect long-term royalty value.
• Simplify Estate Planning — If you sell your mineral rights, you can remove complex assets from your estate, making it easier for your heirs to manage your inheritance. 
• Reduce Management Burden — Selling often means transferring all responsibilities for lease negotiations, royalty accounting, tax reporting, and ongoing administrative tasks to the buyer.
• Diversify Investments — You get to convert a single underground asset into liquid capital that can be invested across multiple opportunities and reduce concentration risk.

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How to Sell Your Natural Gas Rights

If you decide selling makes sense, following the right steps can help you get fair value for your oil and gas mineral rights:

1. Know When to Sell — Monitor natural gas prices and market activity in your region. Selling when prices are high and companies are actively acquiring rights typically provides better offers.
2. Understand Legal Requirements — Hire an attorney to review contracts and ensure compliance with state regulations. Different states have specific requirements for mineral rights transfers that must be followed.
3. Compile GIS and Geological Data — Gather maps, well logs, and production data for your property. Buyers value detailed information that helps them assess the resource potential accurately.
4. Advertise Your Mineral Rights — Share your property details on trusted platforms so buyers can find you. The Mineral Auction helps connect you with serious buyers fast.
5. Review Offers as They Come — Compare offers carefully, considering not just price but also payment terms and buyer credibility. Choose the offer that gives you the best overall value.
6. Sign the Buyer’s Deed — The deed is the document that officially transfers your mineral rights. You sign it after both sides agree on the deal.
7. Close the Deal and Get Paid — Once all papers are finished, the title company sends your money. The sale is complete, and the mineral rights move to the buyer.

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Maximize Your Mineral Rights Value With The Mineral Auction

Natural gas extraction has evolved over the decades. Modern methods like hydraulic fracturing and horizontal drilling now make it possible to reach natural gas deposits that were once impossible to access.

For landowners, understanding these extraction processes helps in making informed decisions about mineral rights. Whether you choose to lease your property or sell mineral rights, knowing how companies will access the natural gas beneath your land is valuable. The Mineral Auction provides a trusted platform where property owners can connect with qualified buyers through a transparent auction process. 

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Looking to sell your mineral rights? Contact The Mineral Auction today to get the best value.

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