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ExxonMobil Increases Domestic Acreage Position
The February 3, 2014 issue of “Rigzone” reports that in separate deals in the liquids rich Permian Basin and the gas prone Utica shale, ExxonMobil is increasing its commitment to domestic exploration and production. Through its subsidiary, XTO, an agreement with Endeavor Energy Resources has been reached, committing ExxonMobil to funding development of the Wolfcamp… Read More
Energy Industry Reacts to State of the Union Speech
The January 29 issue of “Rigzone” included a synopsis of President Obama’s State of the Union Address and the industry’s reaction to the energy aspects of the speech. The President correctly pointed out that for the first time in two decades, the United States is producing more oil than it imports. What he failed to… Read More
Managing your Oil and Gas Royalties
Managing your Oil and Gas Assets A Royalty Owner’s Primer The first step toward effectively managing your oil and gas interests is understanding what you own and how you are being paid. A good place to start is the stub attached to your royalty check, which may also be sent under separate cover and is… 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
