How much money does the average oil well make
Oil and gas royalties paid to the landowners will often last for decades. The oil and gas wells will deplete, however, so over time the money received from oil and gas royalties will drop considerably. The average well is thought to last 35 years. Because of the reliable cash flow stream, oil and gas royalties make for a good investment. Coming up with a simple answer for how much oil and gas wells cost is a difficult task. A wide variety of factors affect the overall cost including location, well productivity, regulations and the well type. In some cases, individual wells may make money, while the company overall loses money. This is because of other costs, such as