Over a barrel: Market prices threatened by expected influx of new wells
Wednesday, August 24, 2016
This fall prolific shale producers plan to return to the oil fields, endangering recent price increases.
The Wall Street Journal reports that Devon Energy Corp., Pioneer Natural Resources Co. and other big players in the shale industry have informed investors they intend on pouring money into drilling new wells.
Through the initial wave of activity, the American energy companies showed resilience as oil plummeted from over $100 a barrel in June 2014 to less than $30 earlier this year. However, the anticipated inundation of well production is making some energy experts nervous.
Learn more: The Wall Street Journal > Some Shale Drillers Return to Oil Patch — Energy Journal
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Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.