Oilfield companies dismiss workers, brace for bankruptcies
Monday, April 13, 2020
Decreased demand and crashing prices have forced more oilfield companies to dismiss workers this week, as many brace for potential bankruptcy, according to Reuters.
Even before crude prices plunged to near two-decade lows last month, many firms were operating on thin margins. These firms now face a lack of demand and customers pushing for deep price cuts to make matters worse.
Already this year, eight oilfield providers, with a total of $10.9 billion in debt, have filed for bankruptcy. That total includes three since prices fell to $20 a barrel in early March.
Learn more: Reuters > Oilfield companies cut jobs, brace for bankruptcies
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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.