The cost to drill a Marcellus shale well is decreasing
Tuesday, March 29, 2016
According to FuelFix, drilling a Marcellus shale oil or natural gas well cost $6.1 million in 2015, down from $6.6 million in 2014.
Actually, the cost to drill wells in other shale plays is getting cheaper, too. The U.S. Energy Information Administration released a report, commissioned by IHS Global Inc., to study upstream costs and production costs in five shale regions.
The average well and completion costs have fallen 25 to 30 percent below prices in 2012, when prices were their highest this decade.
Read more: FuelFix > Here’s what it costs to drill a shale well these days
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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.