What Do Low Oil Prices Mean To Drilling Boom?

I have been told different things about what the low oil prices mean to the drilling boom in the Utica, especially to the Ohio boom where we have more oil than gas... Does anyone have any accurate info on this subject....

Views: 8426

▶ Reply to This

Replies to This Discussion

Permalink Reply by Dexter Green on December 19, 2014 at 4:14am

Easiest way to avoid partition is to sell royalty interest rather than mineral rights.

Permalink Reply by Joseph-Ohio on December 19, 2014 at 5:36am
I wonder that if in the event that no well / lease / Royalty payments exist is it common to sell 'Future Royalty Interest', (and in so doing block / avoid partition) ?

Thank you Dex.
Permalink Reply by Joseph-Ohio on December 20, 2014 at 10:16pm
Thank you for your reply here Dexter.

Seems more than a little counterintuitive but if that's the way it is then that's the way it is.

Earlier you suggested that selling a 'royalty interest' instead of the mineral rights would be the best way to counter any 'Partition' action.

Is that still your understanding Dexter ? Have you seen that tact put to use to block 'Partitions' from occurring ?

Prior to all of these 'Partition' discussions I thought that when someone sold a portion of their mineral rights that the new owner owned and had total control of only the mineral rights that were purchased but no control over the mineral rights that weren't.

I wonder if there's language one could put in the sales agreement to preclude a 'Partition' from forcing a sale upon the original owner of the mineral rights if unwilling ?
Permalink Reply by Joseph-Ohio on December 19, 2014 at 5:28am
Looks to me like there are more ways to get taken to the cleaners than there are remedies to not.

Thank you Philip.
Permalink Reply by edna mae pilon on December 19, 2014 at 9:42am

Thank you for taking the time to explain that to me.  You have given me much to think about.....MP in Or.

Permalink Reply by Joseph-Ohio on December 20, 2014 at 3:32am
Philip and Dexter,

I thought in Ohio a landowner (who owns the suface and minerals) could sell only a portion of the interest in the mineral rights if that would be his/her choice. That would mean to me that the purchaser would only own what was purchased as defined in the sales contract. Any 'Partition' would change the sales contract. How can that happen ? Can the sales contract preclude partitions ?
Permalink Reply by Philip Brutz on December 20, 2014 at 11:14am

Joseph, unless you have your property subdivided and sell one of the parcels, when you sell part of your minerals you are becoming business partners with the entity that purchased them.  When one of the partners wants out of the partnership they can force a sale. 

Permalink Reply by Joseph-Ohio on December 20, 2014 at 10:10pm
Thank you for your reply here Philip.

Seems more than a little counterintuitive but if that's the way it is then that's the way it is.

Earlier, Dexter Green suggested that selling a 'royalty interest' instead of the mineral rights would be the best way to counter any 'Partition' action.

Is that your understanding also Philip ?

Prior to all of these 'Partition' discussions I thought that when someone sold a portion of their mineral rights that the new owner owned and had total control of only the mineral rights that were purchased but no control over the mineral rights that weren't.

I wonder if there's language one could put in the sales agreement to preclude a 'Partition' from forcing a sale upon the original owner of the mineral rights if unwilling ?
Permalink Reply by Larry Wagenman on December 19, 2014 at 10:34am

In ND its a sure thing in the Bakken formation and any well is only a place holder to secure a lease;the horizontal when frackked can only harvest a 300 foot wide swath 2miles long, so they start next to the section line and many years later bring another rig in and do it again.Continental is harvesting from several layers below the Bakken from a single pad, and you can find out about this by a search

Permalink Reply by lance on December 15, 2014 at 7:43am

Well, maybe it won't be all that bad.... I would hate to see all this blessing suddenly come to a screeching halt..... If only the Saudis would cut production the price would go back up slowly... Does anyone know how A.E.U. is reacting to all this?

Permalink Reply by Joseph-Ohio on December 15, 2014 at 1:30pm
We can't afford to lose either - so let's not lose.

We need our G & O industry to pull for us - forget the others.
Permalink Reply by Joseph-Ohio on December 15, 2014 at 2:34pm
Clean, abundant, economical domestic energy.

I'm not hating it and that's for sure.

The domestic G & O industry and our government ought to do what it takes to keep it that way for all of us here in our country.

Drill baby drill.

IMHO.

RSS

© 2025   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service