Reasons to Consider Selling Your Oil & Gas Properties
Bigger Payout Now:
Even if you have an oil and gas lease with an oil company it does not guarantee that oil is under your property. It doesn’t even guarantee that they will put a rig up on your land. If they do, there is no telling how many years it might take before they do get around to drilling. Rather than waiting for months or years to see if anything will develop, selling would provide an opportunity for a lump sum cash payout. This type of payout would allow for the elimination of high interest credit card bills, home or car payments, medical expenses, or any other number of liabilities.
All oil and gas properties are depleting natural resources, not appreciating financial assets. Proceeds from a sale will give the financial ability to redirect assets into investments that will appreciate over time. Elimination of Trusts, Estates and
The sale of mineral interest held in a trust or estate would help eliminate expenses as well as the need to maintain separate bank accounts. It would also simplify tax returns and eliminate monthly distributions.
Removal of Risk:
Oil and gas assets are subject to many uncertainties such as alternative energy. The increasing popularity of ethanol gas and wind energy along with the growing demand for electric vehicles certainly plays a part in this uncertainty. Political taxation could increase to unreasonable margins making drilling unattractive for many oil companies in high risk areas. Weather variances can also dictate pricing.
Elimination of Paperwork:
The sale of oil and gas properties can help eliminate the necessary maintenance of depletion schedules and property tax records. In addition, selling would simplify a federal income tax return. The paperwork and financial record keeping associated with owning oil and gas properties can be cumbersome and frustrating for anyone not dedicated to this type of asset management.
As minerals and royalties are handed down from generation to generation they become increasingly smaller. Because of this, the economic benefit to each generation declines exponentially. They also become more costly and difficult to manage and pass down.