Lowest Rig Count Since 1949
As a mineral owner, one thing to keep your eye on is the rig count. Rig count is an indicator of how much activity is taking place in the oil and gas industry. When rig counts are high it means the oil and gas companies are very active. This means that companies are out there leasing up properties so they have an inventory of property for drilling. When rig counts are low oil and gas companies reduce leasing or stop leasing.
We are currently looking at the lowest rig count since 1949. The low rig count is due the low price of oil recently. With oil prices still below $40/barrel and rig count at it’s lowest level in over 50 years, the activity for leasing is grinding to a quick halt. Companies have a large amount of acreage they leased but it’s no longer profitable for them to drill. This means they will let leases expire without drilling. This also means that operators are not going to be leasing any new property until they drill up their current leases.
We are seeing a large number of mineral owners who are concerned about their declining royalty checks. If your royalty checks have gone done, this is mainly caused by low oil prices. The low rig count does not affect your royalties but it is an indicator that prices will remain low for some time until it becomes profitable to start drilling again.
A lot of mineral owners are trying to determine whether to sell mineral rights. If you have seen your royalty checks decline recently, it may stay that way for some time. Deciding to sell mineral rights can make since if you would rather have a guaranteed amount of cash now. There is still strong demand for mineral rights from buyers right now.
Despite low rig counts, the price of oil is likely to stay low for a long period of time. Operators are not confident the price is going to improve or they would be increasing rig count. For now, mineral owners are advised to keep a close eye on the market including rig count.
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If you have questions about your mineral rights, we’re here to help! We speak with mineral owners every day and we look forward to hearing from you. Please don’t hesitate to fill out the form below with any questions and our friendly team will respond quickly.
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.
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