Never Sell Mineral Rights? Here are 7 reasons to sell mineral rights
You’ve probably heard the saying: “Never sell mineral rights.” It’s common advice passed down through generations of mineral owners. While well-intentioned, this advice often overlooks one key fact—your situation is unique.
When someone tells you to never sell mineral rights, they’re usually not considering your financial goals, family needs, or market conditions. For some mineral owners, holding onto their rights makes sense. For others, selling may be the smarter move.
In reality, there is no one-size-fits-all rule. That’s why it’s so important to look at the facts before making a decision.
In this article, we’ll explore 7 reasons why selling mineral rights may actually be the right choice for you. We’ll also explain when it may be better to hold—and how to make the best decision based on your specific circumstances.
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Garrett Phelan
CEO of US Mineral Exchange with over 27 years of experience in the oil and gas industry. For nearly two decades, he has helped individuals, families, trusts, and non-profits navigate the complexities of mineral and royalty rights to achieve the highest sale prices.
Widely recognized as an industry expert, with an unwavering commitment to a client-first philosophy and extensive industry knowledge, he has been featured in Hart Energy, Yahoo Finance, and the Permian Basin Petroleum Association magazine.
When Should You Hold Onto Mineral Rights?
The advice to never sell mineral rights didn’t come out of nowhere. It’s rooted in the fact that the oil and gas industry has the potential to be incredibly lucrative. If a new well is drilled on your mineral property, you could earn substantial royalty income—often for years to come.
While there are many valid reasons to sell mineral rights, there are also situations where it makes sense to hold. So how do you know what’s right for you?
In our experience, there is one key scenario where keeping your mineral rights is the better option:
You are in a very strong, secure financial position with well-diversified assets.
✅ What Does That Look Like?
If you can confidently say yes to all of the following, then you’re likely in a position to hold onto your mineral rights:
- Your home is paid off or your monthly mortgage is insignificant
- You have at least a six-month emergency fund or access to liquid savings
- Your 401(k) or retirement accounts are fully funded to meet your future needs
- You own additional diversified assets (such as real estate, a business, or private investments)
- You’ve set aside money for college, education, or long-term family needs
- Losing your job would have little to no impact due to strong savings and passive income
If that sounds like you, then holding onto your mineral rights may be a wise long-term strategy. Mineral rights are an investment with the potential to increase in value over time—especially if additional wells are drilled or oil and gas prices rise.
However, it’s also important to understand the risks. A single poor-performing well or an industry downturn can significantly reduce the value of your mineral rights. That’s why it’s critical to answer yes to all of the criteria above before deciding to hold.
However, if your financial situation doesn’t match the criteria above, the old advice to never sell mineral rights may not serve your best interests. Even if you are financially secure, there are still other smart reasons to sell, which we’ll cover next.
7 Reasons to Sell Mineral Rights
The advice to never sell mineral rights may have made sense in the past, but in today’s world, that guidance is often outdated. At US Mineral Exchange, we specialize in helping mineral owners sell mineral rights—so yes, we’re biased. However, that doesn’t mean we think selling is right for everyone.
Our goal is to give you the information you need to make the right decision for your situation. For many mineral owners, selling can be a smart, strategic move.
Here are 7 compelling reasons why “never sell mineral rights” may not apply to you:
1. Diversification
In our opinion, the #1 reason to sell mineral rights is diversification. We regularly speak with mineral owners who have a large portion of their net worth tied up in mineral assets.
If your mineral rights represent more than 10% of your total net worth, it may be time to diversify. By selling, you can reinvest in a total stock market ETF, for example, and gain exposure to thousands of companies—plus receive regular quarterly dividends. This spreads out your risk and makes your financial foundation stronger.
2. Lack of Control
When someone tells you to never sell mineral rights, they rarely mention how little control you actually have. With other assets like stocks or real estate, you can make decisions about how and when to act.
Mineral rights are different. You don’t control when—or even if—your minerals will ever be developed. You might wait years, or even decades, and never receive a dime from production.
3. Volatility of Oil and Gas Prices
You not only lack control over development—you also have no control over oil and gas prices. This industry is known for extreme volatility.
Your royalty income depends on:
- The volume of oil and gas recovered
- Your royalty percentage
- The current price of oil and gas
Prices fluctuate constantly. As a result, the value of your mineral rights can change dramatically from year to year.
Prices fluctuate constantly. As a result, the value of your mineral rights can change dramatically from year to year.
4. Short-Term Financial Needs
Many mineral owners face pressing financial needs. You may be:
- Out of work
- Planning to buy a home
- Starting a business
- Paying for college tuition
In any of these cases, selling mineral rights may be the smartest move. Those who advise you never to sell often don’t understand the real-life financial pressures many people face.
5. Medicaid Eligibility
In some states, oil and gas royalty income can disqualify you from Medicaid eligibility. The rules are complex and vary by location, but the income generated from mineral rights may impact your ability to qualify.
If this applies to you, selling your mineral rights could help protect your long-term care options. We’ve created a guide to help mineral owners better understand how royalty income affects Medicaid eligibility.
6. Risk and Uncertainty
Holding onto mineral rights is a calculated gamble. If you’re financially secure, it may be a risk worth taking. But if you’re not, the gamble may not pay off.
When you hold mineral rights, you’re betting on several unpredictable factors:
- Oil and gas prices staying high
- Ongoing buyer demand in your area
- Technological changes that affect supply and value
- Future drilling activity that may never happen
If none of those work in your favor, your asset may decline—or become worthless over time.
7. Time Value of Money
One of the most overlooked concepts in the “never sell” advice is the time value of money.
If a well isn’t drilled for another 20 years, you could end up with less income than if you sold today and invested the proceeds wisely. Money in your hands now can grow through compound interest, dividends, and smart diversification.
One More Reason to Sell Mineral Rights: Renewable Energy, Global Trends, and the Future of Oil
Another key reason to sell mineral rights is the growing shift toward renewable energy. Oil is a finite resource. While it may not run out soon, cleaner alternatives will eventually replace it.
Political and environmental pressure is accelerating this transition. The coal industry has already declined, and oil and gas may be next. Today, these resources remain essential only because no affordable alternative is fully available. Once a clean and cost-effective option becomes mainstream—like nuclear or advanced renewables—demand for oil and gas will drop.
This change isn’t a matter of if, but when. No one knows the exact timeline, but momentum is building fast.
Holding mineral rights long term means betting that oil prices will stay high for years to come. If the shift to clean energy happens faster than expected, your mineral rights could lose significant value.
Selling now lets you avoid that risk and lock in today’s market value.
Final Thoughts: Should You Sell Mineral Rights?
The decision to sell mineral rights is a personal one. We encourage you to carefully consider your options and evaluate what’s best for your financial future.
The old advice to never sell mineral rights is no longer one-size-fits-all. Market conditions, energy trends, and your personal goals all matter. Holding onto mineral rights could mean holding an asset that declines in value over time.
If you’re ready to sell mineral rights, we’re here to help. Our goal is to connect you with serious buyers, maximize your sale price, and guide you through a smooth, secure closing process closing process.
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Common Questions
The more information you can provide about your property the better! We can give you a better idea about the value of selling mineral rights if you provide more information. The most important thing we need is for you to answer the questions and provide your state and county.
If you have the required documents to list, providing those is extremely helpful!
Absolutely not! When you inquire at US Mineral Exchange we will not be putting any pressure on you to sell. We will help answer any questions you have whether you are interested in selling or not.
At US Mineral Exchange, we take privacy very seriously. We will NEVER sell your information or use it without your consent. When you send us documentation or tell us about your property, that information does not go outside our company without your consent. Even when you list a property for sale on our website, we strictly control who has access to the information about your listing so that only legitimate buyers will be able to see property details.
Many mineral owners make the mistake of getting an offer and quickly selling. They then accept an offer far below market value because they felt pressure to sell. There is nearly always a better price available.
Imagine you were selling a home. Would you get the best price from a random person who walks up and makes you an offer? No way! Now imagine you list the home on the MLS where thousands of potential buyers know your house is for sale. The key to getting the best price is competition. Our guide to selling mineral rights explains everything.
The reason that so many mineral owners decide to sell mineral rights at US Mineral Exchange is access to our large network of mineral rights buyers. Our goal is to help you get top dollar for selling mineral rights by getting your property in front of a huge audience of buyers. This allows buyers to compete against one another which ensures you get fair market value for selling mineral rights.
There are absolutely no cost to list your property. When you locate a buyer by listing your property with us, we are paid a commission directly by the buyers closing agent. This means you never have any out of pocket expenses ever. We only get paid if we can get you a better price than the current offer you have in hand.
FREE GUIDE
Download our free mineral rights guide now! Learn more about your mineral rights.