Pickens: It's All about the Mineral Owners (Forbes)

FROM FORBES

And then, says Pickens, there’s perhaps the biggest factor in America’s favor: private ownership of mineral rights. America is virtually unique in the world in that private landowners, rather than the state, hold title to the oil and gas under their acres. With average royalty rates in Texas paying landowners 25% off the top for any oil and gas recovered, that’s an enormous incentive for ranchers and farmers to welcome drilling rigs onto their land. That’s not the case in Russia, Mexico, China, the Middle East, and virtually everywhere else — where the government owns the minerals and farmers have to be coerced into giving access to drillers.

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Permalink Reply by Donald on September 27, 2014 at 8:50pm

ALL LEASES ARE PAID AT 22% ON GOVERNMENT LAND NOW , THAT'S THE MIN. SHOULD PRIVET LAND OWNERS BE ANY LESS? 

Permalink Reply by Jim Litwinowicz on September 26, 2014 at 7:35pm

Private ownership of mineral rights has its pluses and minuses. Looking at the list of countries he mentions, I seriously doubt that Russia, China, or the ME countries have any trouble 'coercing' farmers to give access to their property.  Not sure about Mexico.

In the US, leasing varies quite a bit as landowners in the SW often have 20,000- 50,000 acres or more each ranch.  Doesn't take long too negotiate a deal with one landowner.  And doing a deed search is pretty simple when one family has owned the land since it was first deeded. But it many other areas like Pa, Oh, and others, there is a huge patchwork of landowners that must be dealt with with ownership that has changed hands dozens of times.  Some of the companies working here seriously underestimated the time and money it takes to get a sizable footprint under lease. Just doing the title work on a couple acres is an expensive proposition.

Two additional advantages for the other countries are that they don't have to pay royalties and get to keep all the profit and they also can do as they lease with little environmental concerns. Landowners in the US are usually much more concerned about protecting their land for future generations. Both of these allow the foreign companies to get oil out faster and cheaper.

Another advantage that these other countries have is that most are government owned or owned by powerful connected families, meaning they don't have to worry about answering to investors and stock holders. It also means that since they are part of the government, they have a much easier time with permitting, regulatory, and legal issues.

Private ownership in the US insures that the wealth gets spread around better instead of the government and power players taking it all. It means better practices to protect the land.  It also means that the government can do less to stop drilling unlike it has in Europe. 

Overall we are much better off with private ownership.  Its one of the keys that helped make this the greatest nation on earth.

 

Permalink Reply by Joseph-Ohio on September 26, 2014 at 7:43pm

We need to keep it that way.

I'm not caring about the other countries or the world's supply.

I care about mine, myself, us and ours.

Permalink Reply by Jim Litwinowicz on September 27, 2014 at 10:04am

Well, world supply and what other countries do has a huge affect on all of us whether you care or not.

Permalink Reply by Joseph-Ohio on September 27, 2014 at 12:36pm
I acknowledge that.
I have always acknowleged that.
Don't paint the picture that I don't / haven't.
That would be wrong.
It's too bad that it's that way IMHO.
Now tell me something about what I dont know - like when we / our leadership starts concerning our / theirselves with what matters to mine, myself, ours and ourselves.
Permalink Reply by craig on September 27, 2014 at 3:57pm

Amen, Jim

Permalink Reply by Joseph-Ohio on September 27, 2014 at 5:13pm
Amen to what Craig ?
Globalization ?
Foreign flags controlling our fuel prices / destiny / otherwise prevailing over us ?
To hell with all of that.
It might be the way it is right now but I dont have to like it and I don't.
Permalink Reply by craig on September 27, 2014 at 7:50pm

Wow

Permalink Reply by Joseph-Ohio on September 27, 2014 at 9:28pm

Think about it.

Permalink Reply by craig on September 27, 2014 at 10:47pm

I've thought about this a lot already, i'm sure I will for the foreseeable future as well. 

I was agreeing with Jim's statement, which is valuable information to consider when thinking or planning our futures. I agree with most of your statement as well.

I'm just not sure there are enough voting citizens that aren't at the gov't feed trough one way or the other to vote for someone that will lead our country properly and not to the oblivion we seem headed for in the long run.

Gov't power, no term limits, and seemingly limitless money are a very very bad combination.

Permalink Reply by Joseph-Ohio on September 28, 2014 at 9:19am
I see this all of the time.
I personally don't think people can espouse and proclaim opposing philosophies and be thought at all credible.
I see this displayed everyday practically and especially from the politicians.
Saying one thing out of one side of the mouth and then saying another and opposite out of the other just doesn't work for me.
To me, politics stink.
All as always only IMHO.

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