Why did the amount of oil and gas checks drop so much

My checks have dropped over the last 3 months by $1,000.00 per month…what’s up with that?

Called depletion & drop in the price of the products.

Depending upon where you are and what type of wells you have, the drop is probably normal. If you have horizontal wells, they have a natural immediate decline which will be very steep for the first couple of years and then level out to low levels which can last for decades.

The second reason is a combo of the first and the drop in product prices over the last few months. More serious if you have gas wells.

The third reason may be nearby hydraulic fracturing jobs within a mile or so of your wells. Often the surrounding wells will be shut in during the jobs, so your production will drop and then hopefully pick back up.

Or combo of all three may be in play here.

Thank you!! No fracking around the well. I’m in East Texas as is the well. It has both oil and gas. The gas is never very much. The oil price hasn’t dropped that much since March!! I just don’t see a drop in production or that much of a drop in price!

Compare your check stubs over the last four or five months and see if the volumes have changed, any post production charges have increased, the price has changed, BTU value changed, etc.