The Permian Basin – Learn Some Remarkable Facts!
February 28, 2018
The Permian Basin is one of the largest and most famous land areas in the United States that has oil, gas, and other natural resources. If you are lucky enough to own oil rights or gas rights in the Basin, you own an important piece of Texas history along with an opportunity for financial gain.
Learn more about the remarkable and essential Permian Basin in the facts below, including its history and how owners of mineral rights are still profiting from this land.
As long as 1.8 million years ago, the land that is now the Permian Basin where many people now own oil and gas rights, was a landlocked sea filled with water. During the Permian Period, which is a span of about 50 years between the Carboniferous Period (300 million years ago) and the Triassic Period (250 million years ago), the water dried up. This left behind a rich bed of sediment made up of plant and animal matter.
Over time, more layers of soil, sand, and rock covered the sediment. After millions of years of pressure over the Basin, the sediment was eventually transformed into the many natural materials that are being extracted from it today.
The Permian Basin is one of the largest known shale deposits in the U.S. It spans approximately 250 miles in width and 300 miles in length and is comprised of three major basins which collectively make up the Greater Permian Basin.
The area stretches under 40 counties in West Texas and Southeast New Mexico. The region produces 1.8 million barrels of crude oil and 5 billion cubic feet of natural gas per day for drilling companies and mineral rights owners.
Although most mineral owners have gas and oil rights, the Permian Basin actually produces three minerals: oil, natural gas, and potash. Potash is a type of water-soluble potassium used in many ways, such as in soap making, glass making, and textile bleaching. Most importantly, potash is used in plant fertilizer since potassium is a very necessary mineral for the proper growth of crops.
The Pacific Railway was built through this region in the late 1800’s, providing access to what was until then mostly wild land. Soon, towns began to spring up along the railroad route and ranchers began grazing their cattle. While drilling for water needed for livestock, many ranchers began to discover "Texas Tea" or oil rather than water.
The first well was commercially drilled in Mitchell County in 1920, proving that oil and natural gas was accessible in the region. At 2,500 feet, this well was named the Santa Rita No. 1. It successfully produced for its mineral rights owners from 1923 to 1990 when it was officially capped off.
5. Deep Drilling
Deep drilling did not start in the region until 1928 when a test well revealed that mineral deposits went as far down as 8,000 feet. Most companies with gas and oil rights continued to drill shallower wells that were more affordable. This continued until better technology was developed that lowered costs. Fracking has now made it possible to efficiently extract more resources from the Permian Basin.
The Permian Basin plays an important role in resource production in Texas and the world. Beginning in the 1920’s and continuing through current time, thanks to improved extraction technology it produces for oil and gas rights owners from a seemingly endless supply of resources.
Half of the world’s oil and natural gas came from the Permian Basin during the World War II era, with many people attributing the Allies victory to this steady supply of resources. This area has also helped companies remain profitable in the region, staying productive through the use of fracking and other new technology.
Based on these interesting facts, owners of mineral rights in the Permian Basin should be able to see that they own a critical piece of the prehistoric past that is still helping to shape the future. The Permian Basin continues to generate necessary resources as well as profits for owners of oil rights and gas rights, with no signs of stopping anytime soon!
Want to Sell Gas or Oil Rights In The Permian Basin?
Permico Royalties Has Buyers For Your Mineral Rights!
Call (432) 242-7335!Mineral Rights in the Permian Basin Texas, Mineral Rights in West Texas, Oil Rights in the Permian Basin Texas, Oil Rights in West Texas
Finding Oil Rights For Sale – You Need A Plan of Attack!
May 15, 2018
Selling Your Mineral Rights? Better Read Here First!
May 1, 2018
Oil and Gas in Texas – How It Changed Our Way Of Life!
April 16, 2018
Do Oil and Gas Upstream Issues Affect Selling Oil Royalties?
April 2, 2018
I’m Selling My Oil Royalties – How Do I Get An Offer?
March 15, 2018