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???? | How much would you make if you strike oil? |
If you were to strike oil, how much would you make. Does it depend? Say you own a big property, almost like a farm or something (just a scenario). Then you dig and strike oil, and it wasn't an undergrounf pipe and you own the mineral rights. About how much would you make, can you give me an estimate. |
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Brad R
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depends on if it ignites as you strike it |
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b2fnow
 |
Some incredible answers here.
The volume of oil produced depends on so many things, like your region and the depth of the oil deposits, the permeability of the reservoir and porosity and thickness and pressure.
As the mineral rights owner, you would receive a one-eighth royalty interest. For every 8 barrels of oil that comes out of the ground, you will receive one barrel, before expenses. If nothing comes out of the ground but water, you get nothing except surface damages.
For oil fields more than 5,000 ft deep, you may only see one oil well per quarter section of land. For wells less than 3,000 ft, you may see 10 wells per quarter section.
Either way, if you decide to drill yourself, and keep the entire mineral interest, the investment is substantial, and you may drill a dry hole and lose it all, or a worker gets hurt and sues you for your house, your land and your oil wells. It's a risky business, and not for the faint of heart.
It is much better, generally, for the landowner to just sit back, watch the activity, and collect the royalty.
Once production has been established, it is a simple matter to calculate reserves of the well, and eventually estimate the size of the oilfied. But initially, how much you will get? God only knows. |
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LS W
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That could only be determined by an oilman. Often crude deposites are not worthy of drilling costs. |
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Kiker
|
With the information presented there is not enough available to make an estimate.
These are some considerations you need to investigate before making an estimate:
1) The size of the deposit
2) Do you own the full amount, as there may be a portion of the underground reserve in a neighboring plot. This will obviously complicate things.
3) what is the grade of the oil?
There are several qualities within the oil market, so the content of other minerals will determine the overall value of your stike. For example, the Middle East has a high sulfur content, which makes them expensive to process.
4) The location of your oil reserve?
If you are in some mountaineous valley, getting to your oil may be difficult and therefore expensive. So, you need to know how difficult extraction is going to be.
As you can see, there is more involved in than shooting the ground like Ol' Jeb in the Beverly Hillbillies. This isn't even the worst. You will need to be dealing with the state and county when it comes time to extract, as you will need to have your plot rezoned. |
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100% Organic Snark™
 |
It depends on whether or not you actually own the mineral rights. |
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pretzel2222
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around $100 per barrell. |
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ticallionstallion316
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nothing...cause President Bush will invade you to take it away! |
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chand c
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No need to reply, just look at the life of people especially higher strata of society in Saudi Arabia. |
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myacumen.com
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It really depends on how much oil, they would calculate the volume and then determine it's value. |
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Tim
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How big is the oil deposit? |
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alex n
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depends where u live here in uk everthing that comes out of the ground belongs to the crown, oil,treasure |
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ZACH C
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well if i strike oil its im propley gonna get at least 25 million but that is if you sell the land to an oil company if u dont u have to clear the area make refineries and barraleing companies |
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fh
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Lets just say I would be able to buy my own Island. |
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Paul S
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Had it happen to me once.
Unfortunately it was a field of used motor oil
from an auto garage back in the 40's -90's.
They just poured it all in the same spots for 50 years!
That's a lot of oil changes to create this little reserve. |
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