The following excerpt from a mineral deed in Custer County, Oklahoma shows you how to calculate the actual price per acre that a mineral deed is conveying. Note also that commonly, the prices will be something from about 3 to 5 times the offer to lease. Caveat – leases usually offer lower per acre pricing if higher royalty is offered. Example – the buyer may offer $1,000 per acre with a 25% royalty or $2,000 per acre with a 3/16th offer – 18.75% royalty.
Two thought processes here is Trump knows that low energy costs (from all sources) is a boost to the economy. He has no incentive to make the oil business highly profitable. But Trump also has the incentive to not see that the oil industry thrives. High prices are only one side of the equation. Lowering costs is the other.
And that is where the president can help the oil companies by avoiding onerous and pointless regulations and to reduce taxes on the industry. The EPA in particular has aggressively limiting the oil business. BLM (Bureau of Land Management) being forced by Biden’s White house to curb drilling, and other utterly worthless rules are costing the oil business. Keeping those costs low is a win-win for the nation. Meanwhile California and Colorado are waging war against the oil industry. I wish every oil company would simply pull out of Colorado and let them see how expensive gasoline gets. In fact, let them live the EV dream of no oil. Denver, in particular, blames the oil business for the big Ozone problem the city has. I bet that problem won’t go away if they shut every well within 50 miles down.