Oil and Gas Could Lead to Property Issues

Posted by on Nov 29, 2017 in Oil and Gas Disputes | 0 comments

The oil and gas industries are booming in Texas right now. As the country moves away from coal, oil and gas have remained steady choices for the country’s energy needs. With oil prices likely to go up in the near future, this could lead to a lot of positives for the state of Texas and for the country, but it could also have some negative consequences.

Among those would be an increase in oil and gas property disputes. As natural gas, in particular, becomes America’s go-to energy source, the search for new fields to explore will lead to a rise in prices. As prices rise, the amount due to the initial landowners is likely to rise as well. This could lead to more land being bought up early for speculation or for massive bidding wars when gas or oil is discovered.

With so much money on the table, and with a sense that the economy, though strong, is fragile, it’s likely more people will try to contest the rights of ownership for different pieces of land. Whether this contesting is done by individuals or by corporations, it’s impossible to know, but the likelihood of disputes is high regardless of who is involved.

While this is a small concern compared to the overall positive energy situation for Texas, it’s still worth the state taking seriously. A rise in lawsuits could clog up the courts while there’s always the possibility of the situation turning violent should the courts be unable to properly resolve issues in a timely manner.

Texas remains the center of the American energy industry. With a new oil boom in West Texas and so much natural gas that there’s now a glut of it, leading to the industry capping some wells, everything is looking quite positive going forward over the short term. However, as the glut subsides and as the oil tries up in the known areas in West Texas, there could be increased demand for land to explore.

Making a point of focusing on property rights now and dealing with disputes before more speculation takes place in the coming years. Encouraging disputers to come forward early can help avoid more serious issues later. Passing new legislation to help negotiate property disputes more easily might also help alleviate the issue.

Texas should be ecstatic with its natural gas fortunes, as well as the continuing strength of oil. With both energy sources remaining (and likely to remain) the main means of powering the country for a long time to come, there are few negatives ahead for the state. One of those few negatives, though, is property disputes. Taking the right steps now will help keep the industry going without a blip going forward.

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