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What Is the Permian Basin?
What is the Permian Basin, and why does it matter? If you’re a landowner in Texas or New Mexico, you’re probably wondering this yourself.
The basin is central to oil and gas production in the country. Modern drilling techniques, combined with a growing number of active rigs, have helped to increase oil recovery and gas production within the area. This drilling activity keeps the country's energy sector moving efficiently.
For landowners in the area, the resources beneath their property can offer opportunities for income, especially if they hold mineral rights. Keep reading to understand why the Permian Basin is important.
Key Takeaways
- The Permian Basin is a major oil and gas region in West Texas and New Mexico.
- Advanced technology, such as horizontal drilling and the hydraulic fracturing method, has made the Permian Basin highly productive and supportive to the state's energy sector.
- If you own land in the Permian Basin, the oil and gas that may be produced from your property can provide a steady source of income through royalty payments.
- Before selling the mineral rights on your land, it’s important to confirm whether you actually own them or if they have already been sold or transferred.
What Is the Permian Basin?
The Permian Basin is a major source of oil and natural gas in the U.S. Its rocky landscape contains many layers of crude oil and gas, making it valuable to energy companies.
With advances in oil drilling technology, companies can now access deeper reserves and increase oil and gas production. These methods have established the Permian Basin as one of the country’s leading regions in crude oil production and natural gas production.
Where Is the Permian Basin?
The greater Permian Basin covers approximately 75,000 square miles and is located in West Texas and southeastern New Mexico. The basin contains three primary geological subdivisions: the Midland Basin on the eastern side, the Delaware Basin on the western side, and the Central Basin platform, which separates the two.
The Permian Basin is one of the largest and most well-studied energy-producing regions in the U.S.. Its economic centers include the Texas cities of Midland, Odessa, and San Angelo. If you're a landowner looking to sell your mineral rights, the Mineral Auction operates in many of these counties. We can help you connect with buyers to get the best value for your property.
How This Impacts Landowners
If you’re a landowner in the Permian Basin, you might have crude oil or natural gas beneath your land. The presence of these minerals can create a steady source of income for you. Once companies drill and produce oil and gas, landowners may begin to receive regular royalty checks.
Owning mineral rights gives you legal control over these resources beneath your land. This control can influence how much oil or natural gas is produced from your mineral estate. In some areas, resources like potash or rock salt can also add value to your property. The presence of minerals on your property makes your land more attractive to companies that are interested in leasing or purchasing your mineral rights.
How To Find Oil on Your Land
To find oil and gas beneath your land, you'll need to watch out for certain signs. You can look for unusual smells, sticky residues, small bubbling pools, or seepage on the surface. All of these signs can indicate that oil or gas lies below. If your neighbors have successfully tapped into oil or gas, your land might share the same underground formation or reservoir.
You can also hire professionals to help. Geologists often study sedimentary rock layers that are rich in organic material, as these are more likely to contain oil and gas. If your property shows potential, The Mineral Auction can connect you with trusted buyers and help you to sell your mineral rights effectively.
Do You Own the Rights to Oil and Gas on Your Land?
When you buy land, the mineral rights don’t automatically come with it. The previous owner might have kept them or sold them to someone else. If you’re a landowner on the Permian Basin, it’s worth checking if you own the mineral rights to your property. To find out who currently owns the mineral rights, you can do the following:
- Start with Your Property Deed – Your deed is the first place to check. It should indicate whether the mineral rights came with the land when you bought it. If a previous owner kept those rights, your deed should mention that too.
- Check with the County Clerk’s Office – Head to the county clerk’s office where your land is located. Bring your property’s legal description (you can get this from the tax office or your deed) and ask to review the deed records. This will help you see if anyone else has claimed the mineral rights in the past.
- Trace the Deeds Backwards – Start with your current deed and work backward through previous sales. Look for phrases like “all mineral rights reserved” or mentions of oil or gas. This helps you determine if mineral rights were ever separated from the land at any point.
- Consider Hiring a Landman – If going through old deeds sounds confusing, a landman can help. These professionals are trained to research land and mineral ownership. They know how to follow the chain of title and interpret legal terms in deeds.
- Ask a Title Company or Attorney – Title companies and real estate attorneys can also help clarify ownership. If the mineral rights are split among multiple heirs or past owners, a lawyer experienced in mineral law can guide you through the details. They can also explain what you do or don’t own.
Maximize The Value of Your Natural Gas Mineral Rights
Recent oil and gas discoveries in the Permian Basin show that the region continues to produce new resources. This makes it an active and valuable area for landowners. If your property contains crude oil or natural gas, these resources can generate long-term income for you through royalty payments.
So, if you plan to sell your rights, The Mineral Auction can connect you with trusted buyers and guide you through the process to sell your mineral rights efficiently.
Do you own land in West Texas or Southeastern New Mexico? The Mineral Auction can help you get the best value for your property.
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We’re located in Austin, TX, and because we have connections to thousands of oil and gas royalties and mineral rights buyers, we know that we can get you the best deal if you are looking to sell your mineral rights, whether you’re located in Texas or anywhere else in the U.S.
The Mineral Auction provided me with an invaluable exit strategy when selling a mineral interest that one of my clients had. I’d recommend them to anyone who has the need to create some liquidity.
Blake is excellent. We have used him in numerous family issues and find him always direct and very helpful. He is incredibly informed and our go-to guy.
Blake and I have worked on several deals together and they have always gone off without a hitch. Both parties leave the table satisfied. Highly recommended!
Blake hit it out of the park! He did everything he said he would do, and then some. He far exceeded our expectations within a day! If you are concerned about paying commission or being restricted to a broker – don’t be. He will max out the value of your minerals. I tried to negotiate with several buyers on my own and didn’t come within the same universe.
Blake Bergstrom helped my family negotiate the sale of our mineral rights for our small ranch outside of San Antonio. I found Blake to be very knowledgable about whole process and took the time to answer all our questions. We were very satisified with the transaction and have already recommended Blake and The Mineral Auction to some our friends. Thanks again.
I have mineral rights to natural gas and Blake was excellent in his advice regarding my situation. Thanks a lot for your help!
