Study information to help advise strategic decision making.
As an Oil Lease Buyer, you act as an Ambassador for oil and gas companies. You negotiate an agreement between a large company and a lessee who happens to have valuable minerals and oil on their property. If you can strike up a good deal as an Oil Lease Buyer, then it’s a win-win situation for all.
With gas prices skyrocketing, the demand for petroleum getting ever higher, and the supply dwindling, oil companies are seeking out as much fuel as they can. Although their large fields bring in quite a bit of dough, there are still privately owned stretches of land that are sitting on oil goldmines. That’s where you, the Oil Lease Buyer, come in.
A professional well versed in the state laws for petroleum and coal leases, you step onto the scene to create a business venture between the two parties. You can offer these clients money in exchange for the use of their land and the right to extract from it. The hard part comes when determining a lease price.
This is where you put your knowledge of finance to use. Not only do you have to know how much the commodities held on the plot of land are worth, but you also you have to guess how much they will sell for in the future. Usually, the debate comes down to whether you’re going to offer the landowner a flat fee or royalty payments when the oil is drilled and exported. Either way, the oil company usually ends up gaining a valuable resource, and the landowner takes in some revenue for oil they have no use for, and might not have even known was right under them until you stopped by.