Land prices fall in shale fields across US as prices drop
Friday, November 13, 2020
Land prices in shale fields across the United States have fallen by more than 70 percent on average since 2018, according to MRT.
The average cost of shale acreage has decreased from $17,000 per acre in 2018 to $5,000 per acre in 2020, according to Rystad, a Norwegian energy research firm.
Additionally, the firm doesn’t foresee demand for oil assets rising any time soon as most energy companies focus on cutting costs amid the coronavirus pandemic instead of purchasing new land for oil and gas drilling.
Learn more: MRT > U.S. shale land prices plunge during oil bust, report says
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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.