Does anyone get royalty payments from wells in the Permian Basin (eastern New Mexico)? I'm sure it is nation-wide but my royalty payments for both oil and gas have gone down, down by about 200 dollars a month for at least a year. Does anyone think this will ever level out or go up again? It is hard to plan any purchases when nobody knows if this loss will just keep going.
Oil/gas wells are a depleting asset. All things remaining equal, your checks, in general, will fall perpetually. But you are also subject to oil/gas prices falling by over 1/2 over the past year. There are many factors affecting your check and you have control over zero of them. You have to be very careful, indeed, in trying to plan on anything regarding royalties. And it would be wise not to make any important plans without a professional evaluation of your property.
Also keep in mind some companies maybe choking back wells and decreasing run time while the price per barrel is low.
I feel your pain, Lynn! Our fmaily has been in the oil business for three generations, and this is a constant...up and down. When it's good, it's really good! When it's bad, well...you know the rest. I receive royalties from West Texas.
I have consulted with professionals and relatives, and they have indicated that royalties will probably go down even more. But, hang on to them! EVENTUALLY, they will rise, but it may be a few years. Please do not sell to any of those folks that are writing you. Many times they are misrepresesnting their offers, according to one professional relative.
Best wishes on "riding the storm"...
Hi, yes, I've watched the royalties fall before after a huge rise about 4 years ago. If prices would stay around 50 dollars a barrel I get a decent return but watching them go below a lot is reflected in gradual downswing. For some reason, I did get 200 dollars more last month on one.
Believe me sister and fellow storm rider, I'm wise to those people asking to buy. One was so persistent that I finally wrote "My daddy didn't raise any idiots!" I am NEVER selling my land or royalties. My dad (30 years older than my mom) bought up some royalties and a small bit of land way back in the 1930's. It will stay in my family. They finally left me alone.
I will check that out. Thanks
Never selling land or royalties. I just wish I could count on payments not going down substantially in my lifetime. I'm a very healthy 68 but I've heard that some companies are cheating royalty holders out of what they are legally owed. I will follow some of the suggestions ion this site to check that out.
Good for you! We "storm riders" have to stick together...best wishes.
The oil and gas business is chicken one day and feathers the next. Bloomberg shows WTI at $44.29 and gas at $2.37. The prices are low because some nations in the Middle East are dumping the product. They need a constant revenue stream to support their social welfare societies. If they don't, well then there is ISIS.
The more they sell, the lower the product price is and then they need to sell even more. It is a vicious cycle.
How long will low prices prevail? My guess is that everything will change as soon as the Iranian bomb goes off. This deal with Iran guarantees that there will be a war, and it will not be a nice one. I hope we don't get nuked.
No political discussions please.
I don't think that is political. It is a matter of supply and demand. The more oil that comes on the market, the price goes down! Be prepared- Iran will put more and more on the market! Anyone that receives a marginal income each month, should not depend on living on oil income. Think of it as extras!!
I understand supply and demand and that the middle east flooding the market has plenty to do with our oil prices here. I just don't need some yahoo saying things like "How long will low prices prevail? My guess is that everything will change as soon as the Iranian bomb goes off. This deal with Iran guarantees that there will be a war, and it will not be a nice one. I hope we don't get nuked "..
THAT is political. Thanks everyone .. just needed some opinions.
I'm out of here.
It is not political, it is a very real danger.
Ma'am, perhaps you are a bit too uptight about that being too political for your little thread. And your reply to me was about NEVER SELLING when I never said one word about selling. I said you should get your property professionally evaluated (if you are trying to "make plans.") Your reply of "I just wish I could count on payments not going down substantially in my lifetime" is naïve. My original answer in this thread stands.
Yes, Lynn, been in O&G business 47 years. Seen $1.00 oil, 0.16 gas. also overr $100 Oil & $5.00 gas.....
REMEMBER THIS WHAT GOES UP MUST GO DOWN....WHAT GOES Way down might go way up!
Sometimes things happen that were not well thought out. http://www.pennenergy.com/articles/pennenergy/2015/11/iran-to-boost...
Don't count on a lot of royalty income in the next few years.
I read that nineteen US oil companies have gone bankrupt this year. It looks like Black Elk is going that way also. We should have kept Iran in the well constructed box we had them in.
Maybe her daddy did raise an idiot!
Well gee, that was an adult response and totally uncalled for. Another reason to never post or visit this forum.
Lynn, I am sorry you feel that way. But when one votes for and supports a political party that is dedicated to one's economic and political destitution, then don't be surprised when their goals are realized. Your royalty income decrease is a direct result of your vote.
Half the people in this country pay no income taxes, but they use the majority of social services. This is unsustainable. Our future is bleak.
The reason the prices are shrinking is----OPEC dropped the prices for oil to bankrupt the oil companies in Western North Dakota(Bakken). There was an article in a paper written by an Arab prince admitting it. AND IT IS WORKING !!!!! Write to your Congress member and the President to stop buying oil from OPEC. We don't need it. Also tell them to repeal the law that states the oil companies in the US cannot export our oil. It has passed the House but our President said he would veto it. The royalty checks would be more if they could export the oil.