http://www.gallup.com/poll/156713/americans-rate-computer-industry-best-oil-gas-worst.aspx
I think this is a reflection of how little the general public knows about oil & gas and how poor of a job the industry has done in educating the public.
I think if people really and truly knew the oil and gas industry, the numbers would be about the same. It's almost impossible for the oil and gas industry to educate the average American and at the same time maintain the secrecy that they want.
What are the oil companies keeping secret?
To the best of their abilities, the value of the property and amount of lease bonus paid. You may have also noticed a news article from a few months ago where Chesapeake and another company made an agreement to not compete against each other in leasing acres in Michigan. Little things like this, that the oil companies don't want made public because it can cause people to sue them for millions of dollars in some cases. Even if you are just dealing with a landman, do it in writing, I have heard some amazing things on the telephone that I think they would not dare to put in writing. If you are in a STATE WHERE IT IS LEGAL check your state and local laws, record a phone conversation, if you must deal by phone with a landman.
Helen M Smith said:
What are the oil companies keeping secret?
Thank you, I would never have thought of that. When landmen call me they always want to know who else has called and the amount of offer, etc. They want to get together and agree on an offer amount rather than compete with each other.
Ms. Smith, there is no harm in letting a landman know he is in competition but there is no reason you should tell them amount involved in other offers you have received. If you have already given them this information, I would say that you are seeking other offers. Worst case, I have told landmen that if someone beats their offer by $1 that the greatest offer is going to get the lease. You can also say that another offer has better lease terms, less years and or beneficial clauses such as pugh clauses and depth severance. The bonus and royalty % are not the only items on the table. There can be great value in the use of water or the right to place a gathering pipeline on your property if you own the surface and if you don't throw it in free in the lease. Oil companies love freebies.
Helen M Smith said:
Thank you, I would never have thought of that. When landmen call me they always want to know who else has called and the amount of offer, etc. They want to get together and agree on an offer amount rather than compete with each other.