Summing up my longer, more rambling question below:
Is it possible that a high offer for mineral rights could be just as much, if not more, than what the mineral rights could actually be worth over time?
My father got a high offer last year, and I’m wondering if that offer was in fact higher than what the actual rights will be worth over time (considering rapid production decline, and economic instability)
…Or will mineral rights almost always be worth more over time than any given offer, regardless of decline and uncertainty?
This is a theoretical question for now (considering the world economy - it probably isn’t a good idea to sell any rights at the moment). But due to the current economy, and recent things I’ve learned about oil production, I’ve been considering the pros and cons of selling.
Since I don’t fully understand the ramifications either way, I’d like to hear from more experienced people in the forum.
My brother and father are vehemently opposed to selling. In fact my brother basically said that if I sell my rights, he refuses to talk to me about it. He thinks it would be an abysmally bad idea, since whatever the offer is - it’s sure to be worth more over time if I keep it.
But considering a) the recent economic downfall that shows us we can never count on oil production or demand and b) the fact that wells decrease production rapidly over time - is it in fact such a bad idea to sell if you get a great offer?
My father got quite a large offer for his rights last year (when prices and production were high). I’m wondering if it would have been such a bad idea to take it?
Some people seem to think that ever selling is a terrible idea - but if wells always rapidly decrease over time, and the world economy is not a sure thing…is it really?
Not looking to start a debate, rather to hear opinions from people who know more than me. These are the questions I’m asking myself, but since I am brand new at this, I don’t have an answer for myself yet (just trying to figure it out).
I’d love to hear your opinions. Would it have been a good idea for somebody to have sold their interests this past November, say, for a large sum - considering the economy now?
Or is it still almost always a better idea not to sell (barring any dire immediate needs like medical operations, etc) - even with the uncertainty of global economy and rapid well declines? - If so, why?