Shale Gas Production Increasing, Drilling Declines
Thursday, July 26, 2012
According to Bloomberg, overall output from U.S. shale deposits hit a record in May, though the number of drilling rigs decreased due to low natural gas prices.
Read it:
“Output in the lower 48 states rose 12 percent to a record 25.58 billion cubic a day from Oct. 1 to May 1, Energy Department data show. The gas-rig count fell 45 percent to 518 last week from the October high of 936, according to Baker Hughes Inc. Gas fell to $1.902 per million British thermal units in April, the lowest intraday price since January 2002.”
The largest supply gain has been from the Marcellus shale. Pennsylvania and West Virginia are doubling their gas outputs from last year’s levels.
» Via: Bloomberg › U.S. Shale Gas Production Gains Even As Drilling Declines
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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.