Pennsylvania is now home to some of the largest natural gas reserves in North America. But oil and gas activity in Pennsylvania started long before, when oil became a valuable commodity. From Wikipedia, “The Pennsylvania oil rush was a boom in petroleum production which occurred in northwestern Pennsylvania from 1859 to the early 1870s. It was the first oil boom in the United States.
The oil rush began in Titusville, Pennsylvania, in the Oil Creek Valley when Colonel Edwin L. Drake struck “rock oil” there. Titusville and other towns on the shores of Oil Creek expanded rapidly as oil wells and refineries shot up across the region. Oil quickly became one of the most valuable commodities in the United States and railroads expanded into Western Pennsylvania to ship petroleum to the rest of the country.
By the mid-1870s, the oil industry was well established, and the “rush” to drill wells and control production was over. Pennsylvania oil production peaked in 1891, and was later surpassed by western states such as Texas and California, but some oil industry remains in Pennsylvania.”
In more recent years, the Marcellus, Utica, and Devonian zones have demonstrated tremendous potential. These zones require massive fracture treatments after being drilled horizontally to maximize production. However, with all of these zones being developed with expensive horizontal drilling and huge fracks, well economics can become challenging during oil and gas price downturns. Many wells in the past that penetrated oil and gas reserves have been plugged and abandoned because they weren’t economic at low prices. We stand at such a time, when mineral buyers and sellers, and oil and gas operators, don’t have a crystal ball to view the future of our industry. Many of us have lived through long downturns, and have minerals that were worth significant amounts of money for a season, only to see those minerals lose much of their value as the industry cycled down.
As you evaluate your overall financial position as it relates to the question of selling some portion of your minerals, we would welcome the opportunity to work with you. You will receive personal service as we research your mineral values, and promptly inform you of our offer. It all starts with you filling out our assessment form.