Mineral Royalties in Demand

As the world’s consumption of oil and gas continues to rise with each passing day, the International Energy Agency is optimistic about the field. The International Energy Agency is an organization, which drafts policy advice for its 28 members. The reason is the rapid recovery of economics of developed countries. These first-world countries are described as oil and gas guzzlers. According to an assessment made by IEA, the estimated global requirement of oil and gas will be 86.4 million barrels per day. Now imagine the impact of this on yourself as an oil and gas royalty investment. The before mentioned assessment has not taken into account the demand of oil and gas in China. China is one of the rapidly growing markets and has a growing need of oil and gas. After the recession in 2009, however the United States energy department stated that the average consumption was around 18 million barrels per day despite the period of recession.

According to the statistics from the IEA in the year 2010, the demand of oil and gas will further increase by 1.7 million barrels per day. This statistics is without including 31 countries of Organization for Economic Co operation and development.

The above mentioned statistics emphasize on the high demand for an oil and gas royalty investment. It is also obvious that the soaring high prices of oil and gas have a ripple effect. Higher the price of oil and gas, higher will the inflammation. High inflammation strains a family’s income as everything in the market is influenced by the inflammation.

If you are someone with an oil and gas royalty investment, we have more good news for you. Since the oil and gas demand is high in the market, the companies compete with one another to buy the royalties. They tend to make better offers and value added services so that the royalty owners may sell their royalties to them instead of other companies.

Are you looking for an easy way to liquidate your assets for a high price? Estimation from a company implies that your oil and royalty investment can bring about a profit between 25 to 70 times the monthly income from your oil and gas properties.

If it is not already an attractive package for you, consider them covering all the taxes and preparing the legal documents. If you are looking for a legal advice, they can also provide you with a lawyer to help you out. However, it is recommended that you take legal advice from your own trust worthy lawyer.

UniRoyalties is the best if you are looking for fast evaluation of your assets. They provide a complete solution to your oil and gas royalty investment. From evaluating assets to making an offer, they have it all covered that too within time and performed by the experts.

For more information visit our website:

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Purchase mineral royalties

The market of commodities has always been considered risky. The prices of oil and gas keep on soaring, this makes people wonder what is the best time to purchase oil and gas. You should make sure that typically it is a profitable trade. This article will guide you if you are planning to make oil and gas investment. The first thing that you should consider when making an oil and gas royalty investment is whether direct investment is more beneficial or the indirect one. Direct investment is the riskier of the two and involves one to one involvement. However, indirect investment is less risky and is based on mutual funding. In the world of business sciences it is a well known fact that more the risk, more the reward.

 Making an oil and gas investment invites some risks, but the incentives cultivated are of much more value. These incentives are related to tax advantaged that will not come when you will make an indirect investment. When you choose direct investment route, you are opting to receive a royalty instead of a partnership as in the case of indirect investment. If you are going to make an oil and gas royalty investment, you keep this in mind that you will have some ownership entitled to the land. This is the reason that it is recommended that you hire a real estate agent to assist you in the process. An agent who can help you to locate land which meets your requirements can be of great value.

You should ask the agent about the differences in various properties to educate yourself over the subject. Additionally you should consider whether the oil and gas produced on the land is worth your investment. Ensure that you have complete know how of the property you are going to purchase before you make your final decision. Once the decision is made you will have to finalize it. Investing in oil and gas royalty is adventurous and risky. Only brave hearted can buy the royalties.

The next logical step after deciding which land to buy is: negotiation with the owner of the property. For this purpose, you can hire a broker to assist you and make the process more streamlined. However if you choose to carry out negotiation yourself you can do so. In both the cases, you should contact your accountant to ensure that your assets are secure and you are protected from impending liabilities.

The main purpose behind oil and gas royalty investment is to make a greater profit out of a minimum effort. For this purpose you should hire a real estate agent who is going to help you secure the best possible deal, which meets your requirements. It is also recommended that you involve a broker and your accountant to further facilitate the process. 

For more information visit our website:

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Persistency in the Oil & Gas Industry by the US Government

The assumption that people are being exploited in the computation of oil and gas royalty can prove to be an interesting speculation. Note especially our governments earning from the previously stated mineral royalties. With the US government earning more than $20 billion in taxes from these royalty payment and $13 billion in royalty payments itself one can guess the lucrative nature of this industry. Also, the government receives over $10 billion in upfront mineral royalty interest fee in 2008 alone.

The previously stated figures can be compared to the economies of the world’s leading industries. The figures are strikingly higher than most of worlds nation’s complete fiscal economy for an entire year. The tax and tariffs imposed on these mineral royalties vary in the United States compared to the rest of the world. Oil and gas royalty buyers need to know all of such tax and tariffs. The difference is because the US government puts a larger proportion of interest on the collection of upfront fees for these royalties. This step is taken in order to mitigate the risk which is a given when dealing in oil and gas exploration. The US government considers the interest payment of the upfront fees as a way to relax any financial burden, which the country might be facing. They heavily rely on these mineral royalties for tax generation, which ultimately aids in easing the economic crisis faced by the nation.

This also implies that whether there is drilling or whether the mineral production generates revenue or not, the government has secured its share in the form of these levies. Apart from payment of royalty to the owner, the companies and their operators are obliged to pay royalty to the US Department of Interior where the mineral rights are owned by the government.

The provision of a sample for the computation of the mineral royalty rate is approximately 1/8^th of the total production value of the onshore federal leases. However if you want to estimate it using the production offshore value leased, it is approximately 1/6^th of that. The computations of all these estimations are stipulated in the ‘Mineral Lands Leasing Act’ and the ‘Outer Continental Shelf Lands Act’.

Considering an example, for if a company wishes to drill for minerals in the US Gulf of Mexico, they would have to pay approximately thrice as much if they were to relocate anywhere else in the world.

With so many costs how can the US government generate revenue? The answer is very simple. They could provide the mineral rights owner with incentives such as subsidiaries for their production. Tax breaks are another huge incentive for people involved in this industry, so the government could try providing those for the most lucrative of owners. One could also provide lower interest on loans to attract public to invest in this industry. Lenient loan payoff could very well be another incentive for the companies and owners, because the production of mineral takes time. Overall, there are a lot the government can do to consistently earn revenues from this industrial sector.

Most of the incentives stated above are currently being followed by the law enforcing authorities. This has led people to believe that the US government has a very open attitude toward the oil and gas royalty buyers.

Provision of incentives and willingness to invest in this sector is rendered useless if one does not have the abundance of resources. The United States however has large sources of oil and gas to keep this industrial sector alive and running.
For more information visit our website:

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