Due to the extreme reliance on oil to move the US and world economy, it’s not something people or the nation can “get by without”.

We use our cars to get to work, drive our kids to school, and ferry food, lumber, coal, and anything else to places where it needed.

But with great demand comes great power to those that hold the oil and gas… the power to reduce production in order to increase the price of an oil barrel… and make lots of money at the expense of everyone else.

Until recently, a lot of that power has been held in the Middle East through OPEC.

However, with President Trump at the helm… power is shifting away from a handful of oil barons in the Middle East… to the US.

So, is it a great time to sell your oil and gas rights today? There is no easy answer, but let’s take a look at some of the major factors that influence oil and gas production in the US, and more specifically, in the Appalachian Basin.

Just like the oil and gas industry… politics is no easy “business”.

Depending on which side of the political spectrum you lean, oil and gas might be seen as one of the driving forces in our economy… or viewed as a drain on our environment… with government regulations being created and deleted left and right.

Either way, most of us agree that we need some kind of fuel to propel us forward each day.

With President Trump at the helm, things are certainly looking good for oil and gas companies. 

But let’s not forget, his reelection is in 2020. Should he not win a reelection, things might change. 

New, heavy regulations might be forced upon oil and gas companies, making it harder for them to compete on the global market.

And that’s just US internal politics. Now think about all of the countries in the world that product oil and gas.

If Russia is stable and manages to secure great trade deals with nations in Europe… they will dominate the market due to the ease of transporting oil and gas across land versus having to ship it across the atlantic.

Turmoil in Venezuela and Libya have slowed their production almost to a halt… but things can change. More production will lower the price of oil… and if it’s too expensive to extract oil from certain locations, it won’t make any financial sense to do and the oil and gas companies will leave.

Easy oil, where you stick a pipe into the ground and oil will just gush out, is no longer the driving force behind oil and gas companies finding new reserves.

No, those days are over!

Today, fracking is the technology everyone is talking about, whether in a good way or bad way.

Luckily, fracking has become much safer and cheaper to do.

This also means that oil and gas companies are being spoiled with options. Texas and California are no longer the primary oil and gas states. Sure, they still produce a lot, but we’re seeing states all over the US finding and digging up oil and gas from the ground… including the Appalachian Basin region.

It’s no secret that oil and gas companies are out to make a nice profit. In fact, their purpose is really just to make as much profit for their shareholders as possible.

What does this mean to people that own oil and gas rights underneath their land?

Well, first of all… leasing your rights and getting the most value from them can be tough. You’ll have to negotiate with the oil and gas companies, who might have dozens, even hundreds, of other options today and in the near future.

The second problem is that landowners have no control over when the oil and gas companies are going to drill on their land. It can be years before they start jamming pipes into your ground… and your royalty fees won’t start flowing into your bank account until the oil and gas comes up to the surface...

The harder it is to pump oil and gas to the surface and transport it to a refinery, the more expensive the operation… which means less profit for the oil and gas companies.

This is why pipelines and proper road networks are so important for oil and gas companies… as well as landowners with oil and gas rights.

Luckily, new pipelines are being approved and built under President Trump… and ongoing discussions on spending “Yuge” amounts of money on fixing up roads, bridges, and tunnels across the US, are being discussed and agreed upon by both political parties.

But, as is often with government and political decisions… things can change quickly, especially when elections happen.

Finally, there are often personal reasons for why people decide to sell or not sell their oil and gas rights.

Sometimes, you just need quick cash. You can’t afford to wait for years and hope you’ll get a better deal down the line.

With leasing being more of a long-term game plan, due to the fact that you don’t know when the oil and gas companies will show up and drill on your land, it’s not always the best option.

Most of the money made from leasing comes through royalties made from oil or gas being pumped up from under your land.

Again, this is a question that is hard to answer. It often depends upon a host of reasons… many being personal to the landowners.

But what I can say is this: Oil and Gas Companies Are In Buying Mode Today!

And their purses are heavy. The only question is whether they are interested in specific properties… based on the selling price and ease of accessing the oil and gas reserves.

Of course, you should think hard about whether you want to sell or not… or if leasing is the better option for you. Factor everything into your decision. And if you are not sure, you can always reach out to Relique Energy Management to discuss your situation.

Hopefully, this article has shed some light on big factors influencing the oil and gas industry here in the US, and more specifically in the Appalachian Basin… and given you something to think about before making your decision.

Easy oil, where you stick a pipe into the ground and oil will just gush out, is no longer the driving force behind oil and gas companies finding new reserves.

No, those days are over!

Today, fracking is the technology everyone is talking about, whether in a good way or bad way.

Luckily, fracking has become much safer and cheaper to do.

Easy oil, where you stick a pipe into the ground and oil will just gush out, is no longer the driving force behind oil and gas companies finding new reserves.

No, those days are over!

Today, fracking is the technology everyone is talking about, whether in a good way or bad way.

Luckily, fracking has become much safer and cheaper to do.