What A Wild Year 2019 Will Be For Fracking Operations!
December 19, 2018
The oilfields of Texas have undergone record production in the past year, with expectations of even higher production as this year goes on.
For energy companies, buyers of oil and gas goods and those with gas and oil royalties for sale, 2018 has definitely been a very good year.
The increase is largely due to the expanded use of fracking, a production technique that has allowed drillers to reach deposits that were unreachable in the past.
Those selling their oil royalties are doing quite well thanks to fracking.
Fracking Brings New Life to Inactive Wells
Hydraulic fracturing or fracking is an oil and gas extraction method that uses water and sand injected at high pressure to crack open layers of rock and shale beneath the surface.
In doing so, it releases more oil and natural gas that standard well drilling is unable to access.
This cost-effective technique has allowed energy companies to increase their production dramatically over the past several years, with those looking to sell oil royalties profiting along with them.
This process is especially useful in conjunction with the horizontal drilling that is commonly used today.
Fracking into horizontal wells has brought new life to thousands of wells across the state of Texas that were previously deemed inactive or had slowed production considerably.
Fracking Has Revolutionized Drilling in the Permian Basin
Between the reactivation of older wells and the increase in horizontal drilling, fracking has turned the Permian Basin into the most productive tract of land in Texas, the U.S., and likely the whole world.
Drilling companies are expanding their fracking operations by leaps and bounds with as many as a total of 7,000 new fracking wells expected to open through the end of 2018.
With 30 or more crew members required to keep each well going 24-hours a day, the increase in fracking spells more than just additional oil and natural gas.
It means more jobs in the state, more profits for owners of gas and oil royalties for sale, and more money spent on fracking and the hydraulics needed to do it.
Better Equipment and Improved Techniques Means Greater Profits
More energy companies are seeing a greater portion of their operating expenses coming from fracking as the number of rigs quickly grows throughout the state.
Experts are also suggesting that fracking horsepower, as opposed to numbers of actual wells, is going to be a better indicator for estimating production.
As the equipment has gotten better and the techniques have been improved, companies are able to frack longer distances and more wells from one central fracking location.
The use of high-tech machinery means fewer rigs, yet exponentially greater production.
It’s a more cost-effective operations model for energy companies, resulting in greater profits for all, including those who want to sell oil royalties.
A Summary of Fracking in Texas
With all this activity going on, it’s easy to see how 2018 has quickly become the year of fracking in Texas and one of profits for anyone selling their royalties.
As drilling companies have expanded their use of this technology, the Permian basin has become a record-breaking hotbed of production with no signs of slowing down.
Throughout the rest of this year and into 2019, anyone with gas and oil royalties for sale who has not already done so should take advantage and contact an experienced royalties company to get started!
Looking To Sell Oil Royalty In Texas?
Contact Permico Royalties To Start Selling Your Oil Royalties!
Call (432) 242-7335 Today!
Understanding Royalty Taxes – Part 5 Income!
June 18, 2019
Understanding Royalty Taxes – Part 4 Gas Severance!
May 30, 2019
Understanding Royalty Taxes – Part 3 1031 Exchange for Mineral Rights!
May 8, 2019
Understanding Royalty Taxes – Part 2 Depletion Allowance!
April 19, 2019
Understanding Royalty Taxes – Part 1 Oil Severance!
April 3, 2019