News

With the OPEC price war behind us, headlines have been focused on decreased global oil demand, the current lack of storage available and market factors that led to negative WTI prices.

“In the history of crude oil, nothing can compare to the past two months.” Goehring & Rozencwajg managing partner Adam Rozencwajg recently joined Financial Sense (FS) Senior Editor Cris Sheridan on the FS podcast to provide an update on global oil markets. This truly is an unprecedented time for energy markets and the implications of reducing global output will likely be with us for years.

Oil prices have joined bond yields in doing the unthinkable: trading at negative levels. In the case of oil, the West Texas Intermediate (WTI) May 2020 contract reached a low of -$40.32 at 2:24 pm on Monday, April 20, before rallying back to finish the day at -$15.92 per barrel. This marked the first time in history oil prices broke below zero.

Royalty checks from a recently drilled well will commence immediately after the well is completed. 

Dry holes pose a significant risk to both Oil & Gas Operators and Mineral Owners alike. 

Royalty Owners only receive income from Oil.

Fluctuations in oil & gas prices have an immediate effect on royalty payments.

Mineral Rights are a niche asset that are only held by "lucky landowners" who inherited their holdings from generations past. 

Mineral Owners only receive income from the wells that access the specific acreage that they own.