Mineral Rights
On Display in Colorado: America’s Unique Advantage in the Shale Boom
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  • Boritz

    Don’t see the difference. Either way you can ‘t drill. Take another example of US vs. Europe. In the US as soon as you close on your house you are awarded the deed document which you can file away in your home office. You may owe $600,000 on the house but you’ve got the deed. In France you are not awarded the deed until you pay off the mortgage. In both countries you lose the house (at least that was the tradition) if you stop paying the mortgage. Holding the deed or ‘owning’ the mineral rights can be thwarted.

  • Jacksonian_Libertarian

    This is only 1 of the reasons American shale oil will continue to vastly outshine, shale oil development in other countries. Another reason is that companies are less likely to have their developments Nationalized (stolen) by the Government. Most of the nations with potential shale oil, have a history of Nationalization. The expertise in fracking and horizontal drilling developed by drilling companies in the US is proprietary, and not easily stolen by Government Bureaucrats. So these companies if they consent to develop national resources at all, will charge an arm and a leg up front as the risk of working for known crooks is very large and ethically repugnant. Also why waste your time when there’s so much left to develop in the US where your profits and property rights are protected.
    It is a little known fact that the productivity of American shale oil wells has been skyrocketing because of the expertise the drilling companies have gained. This is why although the number of drilling rigs has fallen significantly in various regions, production continues to be added at a similar rate as before. I doubt national oil companies without the “Feedback of Competition” can build a similar expertise, so their developments will be both very expensive and disappointing in productivity in comparison.
    In conclusion the development of shale oil in places like Mexico, Russia, Venezuela, China, the Middle-East, etc… is unlikely to provide even a fraction of of the production the talking heads, and national and international bureaucrats are all speculating about.

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