Our Blog
Bakken’s Future
“Rigzone” reports that Harold Hamm, the Chairman of Continental Resources, told attendees at the Williston Basin Petroleum Conference that the Bakken shale could produce 2 million barrels of oil per day (bopd) by 2020. However, he also cautioned that safety concerns could jeopardize this promising potential. Hamm is considered by many the “godfather” of the… Read More
Controversy “Flares” in North Dakota
“Rigzone” reports that the North Dakota Industrial Commission is taking testimony this week regarding a proposal to cut back on the state’s rapidly expanding oil development and production as a means of limiting the amount of gas that is being flared. Virtually all oil wells produce a mixture of salt water, oil and natural gas… Read More
I read about natural gas selling around $5.00… So why does my royalty check show less?
The natural gas price you read in the news is the price paid at what is called “Henry Hub” which is the central gathering point in South Louisiana that establishes the “Base Price” for natural gas sold in the United States. All natural gas is priced at this “Index Price” LESS transportation (pipeline costs) and… Read More
Why is the oil price on your Royalty checkstub less than published rates?
Like most commodities, crude oil is produced in widely differing “qualities.” For example, much of the crude oil produced in the field contains sulfur – sometimes in very high quantities. To refine this high-sulfur crude oil obviously costs more than for what is termed “sweet crude oil” and this incremental refining cost is deducted from… Read More
