Skip to comments.Report: Texas holds $140B in petroleum wealth, led by Houston
Posted on 03/20/2014 5:20:49 AM PDT by thackney
Texas contains about $140 billion in petro-wealth, with corporations owning 80 percent of that total, according to an analysis by an Austin firm.
The figure is based on the value of proved, producing petroleum reserves in Texas, accounting for entities that have a working interest in those reserves as well as individuals earning royalties. The data is based on figures compiled by Blackbeard Data Services, an Austin company that provides information on oil leases.
The study finds that corporations own about $112 billion of the total wealth attributed to petroleum reserves, and individuals own about $20 billion. The rest of Texas total petroleum wealth is held by trusts, non-profits, government, educational institutions and religious organizations.
The largest share of the wealth, about $47 billion, is held in Houston, the report noted. Midland came in a distant second, with $14 billion.
The report notes that historically, oil leases tend to send about 80 percent of revenue to oil companies and 20 percent to mineral owners in the form of royalties. Thats because oil companies that have a working interest in those projects essentially take on all of the risk. Over the last 20 years, theyve typically seen their percentage of the revenue decline to reflect the fact that modern production techniques have made their work less risky.
left out is the fact that the majority of the stockholders of those corporations likely do not live in Texas.
Nobody owns squat until it's pulled out of the ground and sold.
It certainly has value before production. That is why the rights to produce cost money including up front payments.
To put a specific value on it means it has been drilled and flow tested. Most of this is already in production.
Uh oh, don’t tell Putin.
“corporations owning 80 percent”
Need to knock off about 2-2.5% maybe even 3% override royalties.
Doesn’t sound like much, but it adds up.
That little bit can make a difference as to whether or not a lease is worth producing.
$140B seems low at $100pb.
Unlike Alaskans who get checks as their part of harvesting their energy resources, average Texans see very little of this wealth. Much of the state is “up on blocks,” while the oil barons cash in, but that keeps us from getting lazy. It’s every man for himself, but money certainly talks in the Texas legislature.
Example: Years ago, our mortgage company was cheating us by charging late charges, even though we had records showing we paid on time. When we contacted the Attorney General’s office, we were told that Texas had no agency to regulate mortgages! Our complaint would be filed with hundreds of others. The overcharging did stop.....but when we sold that house and came to closing, in order for the sale to close, we had to pay the exact amount they had fraudulently charged us. That’s how average Texans get treated in business and contracts because we don’t have clout.
The difference being the individuals in Alaska that own property, do not own the resources underneath. They are owned either by government, state or federal, or they are owned by the native "tribes", native corporations that were able to claim portions of the state as it was divided up.
I'm not in favor of more cash and control to the government while they decide what they want to give back to the people.
Today, the majority (~80% IIRC) of the payment to the individuals in the state are from the earnings of the Permanent Fund and not oil royalties. The fund is now worth nearly $50 billion. They only pay out about half the earning to keep the fund growing.
“Nobody owns squat until it’s pulled out of the ground and sold.”
That is an untrue statement as it means you don’t have any value until it is sold.
You don’t have any value in the house you live in until you sell it? Then why do the taxing authorities take our a tax from you each year?
BTW, the minerals not worth “squat” in your mind are also taxed each year as, in contrast to your statement, they do have value.
Just pay the property tax on 42 square miles sitting on top od the Cline Shale, the state damn sure put’s a value on it.
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Putin already knows. In the deal that Exxon made with Rosneft, Rosneft was given certain holdings in Texas and the Gulf of Mexico. The Russian govt actually owns most of Rosneft, along with British Petroleum, so, Putin actually manages Rosneft.
What a horrible world when satire and facetiousness have become reality!