Land for Sale with Mineral Rights
The United States is made up of approximately 2.3 billion acres, which 375 million of those acres make up Alaska and 1.9 billion make up the lower 48 states.
Of the 1.9 billion acres, as of 2015 the federal government owned approximately 700 million acres, or 30.5%, of the 2.3 billion acres. That leaves 1.6 billion acres, give or take, that are owned by individuals, families, trusts, corporations, etc., alongside extensive federal mineral ownership managed by the Bureau of Land Management.
This gives any investor a fighting chance at buying some very good minerals and royalties. Investors seeking guidance before acquiring assets can benefit from Buy Minerals and Royalties Consulting.
Investing in Oil and Gas Minerals & Royalties
The only real risk to investing in minerals and royalties is tied to commodity prices.
Once the assets are purchased, you own them (outside of Over-Riding Royalty Interests). You have no monthly operating expenditures in order to maintain your investment or equipment, only annual taxes and that’s only if the interests are producing, making tax considerations an important part of long-term ownership discussed in IRS investment income guidance.
As long as you diversify your holdings to incorporate both oil and natural gas assets located in different basins or areas of the U.S., you should have no concentration risk.
To provide a simplified overview of investment strategies in the upstream sector, we’ve created a table comparing various strategies and their associated level of risk.
How to Invest in Oil and Gas
If you are seriously considering investing in minerals and royalties, there are a few fundamental questions you will want to ask yourself before you decide to invest:
- Do I know what geographic location or basin I would like to buy in Permian, Eagle Ford, Austin Chalk, or Haynesvillle?
- Do I know how to find only legit opportunities in my desired focus area?
- Do I know how to determine what is a good buy when I start to find opportunities?
- Do I know the difference between Surface Rights, Mineral Rights, and Royalty Rights?
Even if you did not doubt your answers to any of these basic questions, it’s still vital to have a conversation with a seasoned industry professional. Oil and Gas Consulting and Education can help investors better evaluate opportunities and risks before making a purchase.
Have you checked out our FAQ page yet? It’s full of definitions, scenarios, and easy to understand explanations of all things related to minerals and royalties.
Schedule a consultation with us today to help you get started or contact us through the form below and we will get in touch with you. See what others have shared in our client testimonials.
Contact Venergy, We Can Help
The key is to work with a trusted professional who understands the mineral rights market, knows the companies that buy mineral rights, and has proven experience securing competitive offers for their clients.
