Insight
Another Lower 48 survival tactic: drilling zero royalty minerals
Get this report
$1,350
You can pay by card or invoice
Report summary
The continued drive to discover economic drilling projects in the US has led to a renewed operational strategy for some producers – drill the acreage where they own mineral rights as a form of competitive advantage against their peers. In this situation, the E&P pays zero landowner royalty, setting themselves up to generate superior returns to their offset peers. For example, the removal of a 20% royalty reduces breakeven prices by between 17 and 23%. New company structures could emerge to capitalise on this.
Table of contents
- Summary and background
-
E&Ps owning minerals
- Perspective: Canada's strategy of royalty land monetisation
-
Differentiated project metrics
- Case 1: Seneca over performing
- Case 2: Chevron performing on par
-
Case 3: BP making up ground
- Detail on BP's early Haynesville activity: Wood Mackenzie North America Well Analysis Tool
- Actual activity outliers
-
Merging two models into one tactic
- Appendix: Zero royalty company-asset files
Tables and charts
This report includes 6 images and tables including:
- Seneca breakevens exceed averages
- Chevron close to Average
- Another Lower 48 survival tactic: drilling zero royalty minerals: Image 3
- BP's early wells place its metrics below the current average
- Haynesville permits granted
- Another Lower 48 survival tactic: drilling zero royalty minerals: Table 1
What's included
This report contains:
Other reports you may be interested in
03 June 2016
Petroleum fiscal and licensing month in brief: June 2016
Insight
Petroleum fiscal and licensing month in brief: June 2016
The fiscal and licensing month in brief will keep you up to date with fiscal system changes and licensing round developments.
$1,35011 January 2018
US Lower 48: 5 things to look for in 2018
Insight
US Lower 48: 5 things to look for in 2018
2018 will bring a fresh set of challenges and opportunities for the shale industry, as it continues to transition from recovery to growth.
$1,35002 June 2016
Impact of oil price on upstream investment, costs and production in the US Lower 48
Insight
Impact of oil price on upstream investment, costs and production in the US Lower 48
In the two years since oil prices collapsed, the US Lower 48 slashed nearly US$150 billion from 2016-17 spend.
$1,350
