The Petram Group Releases its 2020 Colorado Mineral Rights Guide

DENVER, Aug. 15, 2019 /PRNewswire-PRWeb/ -- Colorado Mineral Rights History

Colorado has a long history of oil and gas production, which means it has a long mineral rights history as well, since mineral rights are what entitle land owners to the oil and other resources in the ground. According to the Colorado state website, "Colorado oil production dates back to 1860, when the first oil well in the western United States was drilled in Florence, Colorado." Today, Colorado is one of the largest oil producing states in the United States, ranking 6th in output with 130MM barrels of oil produced in 2017. Despite the overall upwards trend in Colorado oil and gas production, current activity levels are down significantly from its peak in 2014.

Weld County

Weld County has been the driving force behind Colorado's oil and gas production growth with 89% of the state's oil and 33% of its gas production comes from Weld County. In recent years the amount of drilling activity in Weld County has fallen over 50% from a peak of 54 rigs down to 23 as of the date of this writing. With the uncertainty created by the passing of SB181, it is unlikely activity will get back to peak levels at any point in the foreseeable future.

Economic Impact of Oil and Gas Industry

According to a report issued by the Colorado Oil and Gas Association, "as of 2017, the upstream and midstream subsectors alone were responsible for providing 89,000 direct and indirect jobs, $13.5 billion of the state's gross domestic product, and $1 billion of public revenue that supports Colorado schools, social assistance programs, parks and water infrastructure...Oil and gas is responsible for at least seven distinct streams of public revenue"

Political Climate - Senate Bill 181

Colorado's oil and gas industry has had a tumultuous relationship with state legislators. Over the years, several proposals have been brought forth that would curtail or otherwise limit where oil and gas production can take place. While oil and gas production continues in Colorado, the passing and implications of SB181 creates a cloud of uncertainty around future oil and gas development in the state. Oil companies may start to seek more oil and gas friendly states to shift their focus, deciding it is not worth the risk of not getting permits approved, and withdraw from Colorado over time.

Colorado Mineral Rights Value

The political climate in Colorado will certainly impact mineral rights values at it adds a cloud of uncertainty around the future of the industry in the state and may impact drilling activity. Not surprisingly, as evidenced by this report, drilling activity is one of the three key components that drive mineral rights values, so if activity decreases, values will decrease. The other two variables that significantly impact mineral rights values are (1) location and (2) oil and gas prices. You can learn more about mineral rights valuation at http://www.petramminerals.com/post/mineral-rights-value.

The only way to know what your minerals are truly worth today is to receive a qualified offer from a professional buyer like The Petram Group. You can get in touch at contact (at) thepetramgroup (dot) com.

To read the guide in its entirety, visit http://www.petramminerals.com/colorado-mineral-rights

SOURCE Petram Group