Oil prices fall, but drilling remains steady
Wednesday, October 8, 2014
According to Midland Reporter-Telegram, the cost of domestic crude oil has fallen slightly, but that shouldn’t stop oil and gas companies from drilling.
As of Oct. 3, the price per barrel dropped to $89.74. In 2014, the barrel price has fluctuated between $91 and $107, which is a good range. The U.S. has been steadily producing oil, with over 2,400 new drilling permits issued in Texas during August.
If prices continue to fall, some companies may consider putting a halt to further drilling, especially unconventional drilling, which is more expensive than traditional methods of drilling.
From Midland Reporter-Telegram:
“While crude prices play an important role in helping exploration and production companies decide on when and how much to drill, the recent decline won’t stop the domestic oil and gas juggernaut.”
Via: Midland Reporter-Telegram > Oil prices off, but drill bits spin on
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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.