Oil Surges 8% Higher
When oil surges 8% higher it can create waves in the oil market. Many are wondering whether the price of oil has finally seen the bottom. After oil surged 8% over 3 days it marked the biggest 3 day gain since 1990. Even with this sharp increase in prices, oil sit at less than half of what it did just 1 year ago. The impact is being felt across the entire industry.
Oil Prices have far reaching effects
The price of oil is having an immediate impact across the industry. Operators are being forced to reduce their capital expenditure. This means less rigs are operating. With less rigs comes a decrease in the demand to lease mineral rights. Operators are focused on drilling the acreage they have already leased and not on leasing new acreage. What does this mean for you? If you’re a mineral owner it means that it may be many years (10+ possibly) before you get leased. If you are already leased, it means that the operator may not drill on your property.
With lower oil prices, operators are focusing heavily on areas with the greatest reserves. Places like Belmont County Ohio, McKenzie North Dakota, and Stephens County Oklahoma are still seeing strong demand.
When will the pain end?
The main reason we have seen the market price of oil decline is due to supply. OPEC has continued to produce at the same rate as they have in the past. The fracking technology that created a boom in US Shale Production is also the same thing causing the decline. We have figured out how to produce a large amount of oil from each well drilled which has led to over supply. Combine this with a decreasing demand and the price of oil is set to remain low for some time.
Selling Mineral Rights
If you are thinking about selling mineral rights or selling royalties now is still a good time. There is still demand for your property regardless of the price of oil. There are many reasons that owners choose to sell so it really comes down to whether now is the right time for you. The market value of mineral rights is going to be based on what buyers are willing to pay today for your property.
If you want to sell mineral rights or buy mineral rights, you can get started by creating an account with us.
Contact US Mineral Exchange:
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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