How Much Money Can You Make From an Oil Well?

How Much Money Can You Make From an Oil Well?

How Much Money Can You Make From an Oil Well?

One of the most commonly asked questions from current and future mineral rights owners is this: How much money can I make from an oil well? Of course, there are an enormous amount of variables and individual circumstances, but an oil well on your property (or someone else’s property) can lead to a very high income revenue stream. In this article, we are going to lay out a few scenarios to help explain the potential money you can make from an oil well in the United States.

Variables that Determine Your Oil Well Earnings

No two oil wells are alike, so in order to be considered for the next state or private drilling contract, your land must be up to pretty high standards in terms of how profitable an extraction operation may be. When looking for new land, oil companies look out for:

  • Property Size
  • Property History
  • Estimated Number Size of Oil Reserves

If your property looks good, then a contract will be drawn up to compensate you for a portion of the minerals extracted and sold from your oil well. The amount of money you can make from an oil well each month will be based on your:

  • Percentage of Mineral Rights Ownership
  • Royalty Percentage as Defined in the Lease Agreement
  • The Price of Oil
  • The Volume of Oil Produced and Sold

Oil Royalty Earnings Calculator

If you are looking for a quick estimate to determine how much money you can make from an oil well, then you can use this helpful oil royalty calculator. By using the variables defined above, this tool can help you get a baseline estimate for home much you can make from your producing mineral rights. Depending on your share of the production, oil royalty payments can range from as little as a few dollars to hundreds of thousands of dollars per month.

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