Industry Guides & How-To Resources with specific types of property or business. Check our valuable guides on this page today at Ranger Land & Minerals.

Shell

Shell Joins Other Oil Majors In Energy Transition Push

Oil supermajor Shell plans to announce by the end of the year a significant restructuring to reflect its net-zero emissions goal for 2050 and to align itself with a green recovery from the pandemic, a Shell source told Reuters on Tuesday.

Shell’s chief executive Ben van Beurden has told employees in an internal website video that there would be restructuring and job cuts, sources who saw the video told Reuters.

Shell’s official website has posted a video message from van Beurden, who says that “[S]ociety must remain focused on the longer-term challenge of climate change. Because it hasn’t gone away. It still needs urgent action. Shell has a big part to play.”

“Our current business plans will not get us to where we need to be, and we will have to change those plans over time. And, it won’t be easy, and of course there will be obstacles to overcome, but like many others, I believe that society now has a unique opportunity to accelerate towards a cleaner energy future,” the top executive said in the message.

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Source: Oil Price

Image Credit: frankieleon/Flickr/

jp morgan

JP Morgan Predicts $100 Oil

It may sound far-fetched at a time when many are worrying if Brent could rise back to $50 a barrel, but at least one analyst believes the benchmark could not only recoup all that it lost in value since the start of the year but shoot up over $100 a barrel in the observable future. “The reality is the chances of oil going toward $100 at this point are higher than three months ago,” JP Morgan head of oil and gas research for EMEA, Christyan Malek, said as quoted by CNN.

The reason is simple: the cyclical nature of the oil industry. In March, before the coronavirus pandemic really hit, JP Morgan’s analysts issued a note saying the oil industry was entering a supercycle that could see the price of oil hit $190 a barrel by 2025. According to Malek, this is still a distinct possibility.

The forecast is not without a logical basis. The way cyclical industries work is that the industry produces a lot of the commodity when there is high demand for it. Eventually, supply begins to outpace demand for one reason or another. Prices then fall, the industry retreats and shrinks production to limit supply and stimulate higher prices. This brings a deficit in the commodity, which pushes prices up. This cycle repeats once every few years.

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Source: Oil Price

If you have further questions related to JP Morgan predictions, feel free to reach out to us here. 

 

oil gas pump for subsurface extraction

Subsurface Rights: What Exactly Do I Own?

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So you’ve just bought some property, congratulations. Under the sale of a fee simple estate, it is common for most landowners in the United States to own both the surface and subsurface rights of their property. In this article, we are going to define subsurface rights and cover everything you need to know about what you own below your property.

Surface Rights vs. Subsurface Rights

Surface rights are extremely easy to identify and understand. A property’s surface rights entitle the owner for use of everything above the ground within the property boundaries. This includes structures like buildings and fences, as well as trees and water access rights. Subsurface rights, as the name suggests, refer to the ownership of the land below a property’s surface.

Are Subsurface Rights Real Property?

Subsurface rights are considered a real property, just like any other real estate asset. Subsurface rights can be owned independently or divided and shared between several parties. Most commonly, subsurface rights constitute ownership of mineral rights.

Mineral Rights

If you own your property’s mineral rights, then there are a few ways that you can utilize your asset. Mineral rights can be sold or leased in a split estate. Here, you can either sell your mineral rights to an interested party or lease your mineral rights to an oil and gas company.

Why are they Valuable?

As suggested above, there may be many people interested in purchasing or leasing your subsurface and mineral rights. This is because they present an opportunity for you to sell your asset in one lump sum or receive a portion of resource sales.

In the United States, subsurface rights are considered valuable for the precious minerals that can be extracted and sold. Most commonly in the United States, oil and natural gas are the most sought after subterranean resources.

Selling Mineral Rights in Texas

Selling Mineral Rights in Texas: 5 Simple Steps to Take

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Here in the Lone Star State, we know what we have is valuable. Texas is a great place to live and also has some of the world’s largest producing oil and gas fields spread across the state. If you’ve got a special piece of this land that you’d like to sell for your financial gain, the property’s mineral rights can be very valuable. In this article, we will outline five simple steps to take when selling mineral rights in Texas.

1. Get Your Paperwork Ready

In order to sell mineral rights in Texas and any other state, you will need to prove that you own them. Try to locate any documents that legally describe your mineral rights property like fees, leases, and stubs. This is important because mineral rights transactions are not required to be published, and occasionally mineral rights records are lost.

2. Evaluate the Value of Your Mineral Rights

Next, seek out an industry expert to provide you with unbiased, honest information about your property. Get together any records of your property’s wells history in addition to GIS maps and data. This will give you a baseline for companies to bid upon.

3. Let the Offers Flood In

When you’re ready, you can begin to contact oil and gas companies or property managers to help you sell your mineral rights. Mineral rights in Texas can be extremely valuable, so there are many people ready to help you earn the best possible deal on your sale.

4. Determine the Best Deal on Selling Mineral Rights in Texas

After contacting enough potential partners, carefully analyze the contracts and the subsequent negotiations. There really is no standard contract for selling mineral rights, so the value of your sale is determined by your property’s value, your negotiations, as well as current market prices.

There are some search terms you can use on Google like “mineral rights texas search”.

Most importantly, you will want to try and receive a large lump sum for the sale of your mineral rights. Secondly, you may be able to later earn royalty interests on the land’s oil or gas production.

5. Sign the Paperwork and Celebrate

Once the documents are signed, the hard work is over. In oil and gas leases as well as mineral rights sales, the mineral rights owner rarely has to do much of anything at all. Instead, they are able to earn an income from selling valuable mineral rights.

Conclusion on Selling Mineral Rights in Texas

If you have further questions on Selling Mineral Rights in Texas, feel free to reach out to Ranger Land and Minerals.

gas flaring

Texas could tighten some natural gas flaring rules by fall

Texas as early as this fall could tighten some rules for the controversial practice of natural gas flaring, the head of the state’s regulatory commission said on Tuesday.

The practice of burning off unwanted natural gas produced alongside more profitable oil has become a top issue for both environmentalists and investors, who are focused on sustainability measures and are already frustrated by a decade of poor financial returns in oil and gas. Flaring has surged with U.S. oil output, but can worsen climate change by releasing carbon dioxide.

Recommendations from an industry panel, provided to state regulators at a meeting on Tuesday, included reducing to 90 from 180 the number of days producers can routinely burn unwanted gas without going to the Texas Railroad Commission, the state’s regulator, for a hearing.

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Source: Reuters

oil-production

Oil settles higher as global production declines outweigh pandemic-related demand concerns

Oil futures gave up earlier losses to settle higher Monday, buoyed by declines in global crude production even as the potential for a fresh hit to energy demand climbed on the back of apparent global increases in new cases of coronavirus.

“Traders in general seem to see upside risk from lower production and downside risk from the virus impact on the economy, and high stocks of crude close to parity,” said James Williams, energy economist at WTRG Economics

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Source: MarketWatch

mineral rights valuation

Mineral Rights Valuation

Are mineral rights valuable? Well, yes and no. Below, we will answer this question by exploring the different kinds of mineral rights and mineral rights valuation.

The Short Answer

Yes. Mineral rights are valuable.

Owning mineral rights is just like owning land or any other property. Of course, mineral rights entitle you to all of the valuable resources that can be found within the plot’s subsurface. Because of this, mineral rights are both valuable as an asset, as well as a potential source of income from the extraction and sale of oil, gas, or other minerals.

The Long Answer

As outlined above, mineral rights valuation has two distinct ways of measuring. The first comes in the form of non-producing mineral rights. The second comes into play when an oil or gas company is able to buy or lease your mineral rights. Below, we will outline the key differences between producing mineral rights vs. non producing mineral rights.

Non-Producing Mineral Rights

You own non-producing mineral rights if there are currently no oil or gas companies extracting minerals from your property’s subsurface. For homeowners, mineral rights are common in deeds as a part of a fee simple estate.

In a fee simple estate, a person owns both the surface and subsurface (mineral) rights. Conversely, in a split estate, you may only own your surface rights while another individual or entity retains the mineral rights.

Non-producing mineral rights valuation can be really high. Then again, they can also not hold much value at all. Obviously, there is a huge difference in the mineral rights valuation of a 50-square-foot yard in Dallas vs. 16 acres near existing oil fields.

Producing Mineral Rights

Producing mineral rights are inherently valuable because they produce a stream of income. If an oil company produces and sells resources from your land, then you are entitled to a percentage of the income.

The amount of money you earn will be based on your percentage mineral rights ownership share as well as the terms agreed between both parties. Typically, mineral rights leases for oil and gas companies agree to pay landowners monthly for the sale of the extracted minerals.

If you have further questions, feel free to reach out to us here. 

oil royalty and oil royalty interest

What is the Difference Between an Oil Royalty and an Oil Royalty Interest?

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Whenever you are selling or leasing your mineral rights, negotiating the best deal is very important. If you allow an oil or gas company to explore and drill on your land, then you will want to ensure that you are compensated for the absolute highest share possible.

Two of the most common ways to be paid for the production of oil and gas are through royalty payments and royalty interests. Despite the fact that they sound so similar, the two terms actually refer to two completely separate kinds of transactions. Not knowing the difference can end up being very costly to your future income streams.

In this article, we are going to fully define royalty and royalty interests as they relate to the oil and gas industry. In doing so, we hope to provide a helpful insight for anyone looking to sell or lease mineral rights.

What is an Oil Royalty?

An oil royalty is a landowner’s share in the oil or gas production below his or her property. In some cases, single landowners may be the only parties that receive a royalty payment. More commonly, however, joint and combined subsurface rights make it possible for landowners to earn a smaller share of a larger oil production.

Those who own mineral rights of a plot of land can receive oil or gas royalties. In this scenario, the shareholder is considered a “non-interest royalty owner.” Once production begins, the royalty payments are then paid as a percentage share of the well’s output and resource sales.

What is an Oil Royalty Interest?

Of course, landowners are not the only ones involved in the extraction process. In addition to oil and gas drilling operations, there are many financiers and contractors that enable a plot of land to be explored and drilled for oil or gas. For these contributions, individuals and entities are awarded with oil royalty interests.

If you are a landowner and decide to sell, rather than lease, your mineral rights, then you still may be able to hold an oil royalty interest for the property’s future production. In addition to the large lump sum you will receive when selling your mineral rights, oil royalty interests allow the potential to benefit from the future sales of oil or gas.

oil-gas

The Importance of Oil to Energy Development

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The modern history and innovation of petroleum dates back to 1846 when the process of refining kerosene from coal was introduced. The credit for this process goes to Nova Acotian Abraham Pineo Gesner. The speed of time stimulated human brain cells to such an extent that Agencie Lucasovic introduced the terms to the gas refinery, which facilitated the process of purifying kerosene. The earliest rock oil cave was discovered in Buberka, near Krasno, Galicia (Poland / Ukraine). After discovering wells and deposits, scientists began working on the synthesis of chemical components of oil and the distribution of formulas. In 1854, Najman Sully, a professor of science at Yale University in Inouehaven, began the work of separating the constituents of petroleum. Was capable of meeting 90% of its oil needs. From the oil reserves, the companies traded oil to facilitate their delivery to areas where oil production is low.

Therefore, the first commercial refinery to commercialize the world was established in 1857 at Plosti, Romania. Romania is the only country in the world whose crude oil production has been tested internationally (statistically). The total volume of this refinery was 275 tons. The first oil well in North America was discovered in 1858 by James Mulrolim in Oil Springs, Ontario, Canada. The United States wanted to convert these natural metals into large-scale industrial and trade assets as soon as possible.

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Source: Modern Diplomacy

average natural gas well production

What is an Average Natural Gas Well Production?

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More often than not, individuals looking to earn income from their mineral rights are hopeful to find oil below their property. The now-timeless art of getting rich off of your land is almost synonymous with striking a fruitful field of crude oil.

But what about natural gas? In this article, we are going to take a look at natural gas wells across the United States. After identifying the best parts of the country to earn natural gas royalties, we will answer the question, “What is an average natural gas well production?”

The States with the Most Natural Gas Production

In 2016, natural gas was the largest source of energy in the United States. In comparison to coal, natural gas is lower in price and also better for the environment with a smaller carbon footprint. For this reason, many companies may be interested in buying your mineral rights in order to extract and sell natural gas.

According to the US Energy Information Administration, 2018’s top states for natural gas production are as follows:

  1. Texas
  2. Pennsylvania
  3. Oklahoma
  4. Louisiana
  5. Ohio

How much does an Average Natural Gas Well Produce?

Within the states listed above, much of the natural gas produced can be found in some of the countries’ largest gas-producing fields. For example, the Marcellus Shale field in Pennsylvania and West Virginia is known to produce nearly 3,000 billion cubic feet of natural gas per year. Likewise, the Barnett shale, Haynesville Shale, and Eagle Rock formation make up a large portion of Texas’s gas production.

Of course, natural gas wells eventually deplete and the amount of resources that can be extracted decline gradually over time. At first, a well will likely produce between one and twenty million cubic feet of natural gas per day. After which, the rate will slowly decline over a well’s 20 to 30 year lifespan.