Investing into mineral rights is an excellent way for investors to create and preserve their wealth while diversifying their financial portfolios. The U.S. oil and gas industry is experiencing an energy revolution due to technological advancements and mineral rights are a low-rosh way to become involved in the shale boom.
When investors purchase mineral rights, they receive royalties for production without incurring the risk that exploration and development investments do.
Benefits of owning mineral rights are:
There are no drilling or exploration costs
Mineral ownership is a perpetual ownership
They are easily transferable
Mineral owners will never receive a bill or capital call
Whatever comes out of the ground, whether one barrel or a million barrels, mineral owners get their piece
Purchasing minerals and real estate
Think of investing in minerals as real estate. Mineral ownership is the legal titled right to the minerals below the surface of any piece of land. The owner is allowed to lease, sell or receive proceeds from such mineral ownership as the land is developed.
The video demonstrates the importance of location when viewing different minerals to purchase. Anyone can buy minerals in the United States, the big question is where and when to buy.
Value in purchasing mineral rights is buying the right minerals, in the right place, for the right price. Knowledge is key when choosing which minerals to own based upon exploration background.
Investors must find mineral sources provided by a company or individual that can offer technical insight and advice. Purchasing mineral rights is an excellent way for investors to be a part of the oil and gas industry.
There are no exploration or operating costs, no operating liability and investors will own their minerals forever!