US rig count falls to 480
Monday, March 14, 2016
As of March 11, the U.S. oil and natural gas drilling rig count fell to 480, with 386 oil rigs and 94 natural gas rigs in operation. This is the lowest number of rigs since 1940, according to Baker Hughes Inc. data.
Reuters reports that oil output this year is expected to be 8.7 million barrels per day. Some producers are using methods like choking and lifting to produce more from wells, but the source says that these methods may just reduce wells’ decline rates instead of adding production.
While rigs are being cut, crude oil futures ended at $38.50 a barrel on March 11.
Read more: Reuters > U.S. oil and natural gas drilling rig count at record low
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Depending on the company, royalty payments can arrive monthly or quarterly.
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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.
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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.