Monthly Archive for: ‘December, 2011’

Production of crude oil from United States reserves has been in decline by an annual average of nearly 2.4% since 1985. Production of 273 million barrels in 1985 has since been reduced to 150 million barrels in 2008 – this has been a reduction of nearly 45% in the past 24 years. US Crude Oil Facts: In the first quarter …

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Why Invest In Energy? Increasing Demand Currently the world produces and consumes about 85 million barrels of oil a day. The recent worldwide economic downturn has affected this demand, and supply is contracting accordingly to accommodate this decline. However, prior to this, world demand for energy has been increasing steadily at a rate averaging about 2% per year. The worldwide …

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Investing in oil and gas ventures can be a rewarding process. If you’re looking for a way to diversify your portfolio, a working interest or a royalty interest in an oil or gas reserve may be a lucrative investment strategy. If you’re looking for replacement properties, the IRS considers producing oil and gas wells to be “like-kind” properties with some …

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Investors can diversify their portfolios by exchanging an apartment complex, raw land, an office building, or any other eligible investment property for an interest in oil or gas royalty production. The term, “Royalties” is often used interchangeably and refers to: Mineral Interests Royalty Interest Both interests involve ownership of minerals under the ground and both entitle their owner to receive …

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Whenever oil or gas production begins, the landowner is entitled to part of the total production. A royalty is agreed upon as a percentage of the lease, minus what was reasonably used in the Lessee’s production costs. The royalty is paid by the Lessee to the owner of the mineral rights, the Lessor in the Lease. It is based on …

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