Need some good news? We could all use a dose of hope: business is cyclical.
Look at the data we share on our spot prices page. You can see crisis and recovery patterns in the 2008 recession and the 2014 oil glut. The recovery is a series of bumps instead of a clean linear pattern. We’re sharing our take on the stages of recovery so that mineral owners can be prepared for the months ahead.
Here’s What’s Happening Right Now
OIL AND GAS PRICES ARE RISING.
It feels slow, but recovery is performing well. Prices are back in the thirties when only weeks ago they hit a historic negative.
PANIC PROFITEERS ARE TARGETING MINERAL OWNERS.
They’re sharing scary, wildly speculative predictions to leverage fear to induce a lucrative sale. Consider their motives. If the Energy Sector is doomed, why are they investing aggressively?
You’re likely about to receive your lowest royalty payment in May or June. Our clients are seeing their May and June checks hit the hardest. Remember how long you waited for that first check on a new well? Mineral owners’ statements see the pain months after the producers.
INDUSTRY DIDN’T STOP, IT SLOWED.
Mineral owners are still receiving offers. If you receive one, give our office a call. We’ll help you assess if it’s promising or predatory.
WHAT’S THE CYCLE OF BUSINESS FOR OIL AND GAS?
The Fall Indicators: Spot prices plummeted to negative levels for the first time in history…
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