For the full annual 2017 Texas Petro-Wealth report in pdf click on the following link: 2017 Petro-WealthReport

Produced by Blackbeard Data to outline the demographics of Texas oil and gas ownership.

Executive Summary
Texas contains a total of $67.5 billion worth of petro-wealth. Corporations own $54 billion worth of petro-wealth, individuals own $8.8 billion, trusts own $2.4 billion, with the remaining $2.3 billion divided among non-profits, educational institutions, the government, and various religious organizations.

Overview
Based on our data and calculations, Texas holds roughly around $67.5 billion of proved producing reserves. To get the total amount of petro-wealth we performed an extensive decline curve analysis on a county by county basis.
The non-producing, probable, and possible classed reserves are not included in this report. Our report will only focus on proved producing petroleum reserves.
Below we have created a graph that shows the wealth of the proved producing reserves based on interest types. There is a Terminology section at the end of this report for clarification on the different interest types.

Ownership Of Total Petro-Wealth By Entity Class
In the graph below all types of ownership such as Royalty Interests, Working Interests, and Override Interests in oil and gas leases in Texas have been group by entity class to outline where the petro-wealth is distributed by entity type
The highest dollar amount of petro-wealth is held by corporations. An important factor to take into consideration with the petro-wealth held by corporation is the working interest values owned by corporations. Working interest will be higher in value than a royalty or override interest.

Ownership Of Royalty Petro-Wealth By Entity Class
We removed working interest from our totals in the graph below. Now we have a more accurate view of the distribution among entity types of oil & gas wealth in Texas. It is important to note that wealth among individuals decreased by 24% while wealth held by corporate entities decreased in value by almost 85%.

Ownership of Royalty Interest By State
If a property is located in Texas there will be a higher ratio of Texans owning the interest in the asset than people living in other states, geographically speaking. Our next graph supports this theory.
A second graph has been created omitting Texas since the concentration of petro-wealth is disproportionally higher in Texas than other states.
Bulk of wealth owned by Texans
Our first graph shows that Texans own roughly 87 % of the total override and royalty interests in oil and gas property in Texas.
Ownership of Texas oil and gas property outside of Texas are the following: Oklahoma 3%,California 1.5%, Colorado 1.4%, and Arkansas 0.5%.
There is a very small fraction of Texas petro-wealth is owned by Non-US citizens. Some domestic companies may own minerals which are in turn owned by foreign nationals or foreign states via the stock shares.

Petro-Wealth By City
In our next series of graphs we selected the top 20 cities of petro-wealth. The graph below includes all interest types. There will be a bias to Houston and Midland in the graph below since working interest has been included. Many oil companies are located in Houston and Midland.

Texas Petro-Wealth By City – Royalties Only
We removed working interest from our calculations in the next chart. There is a slight shift in top 20 cities. Houston is still the top city but Austin takes a spot above Midland.

Terminology
There are three types of ownership for oil and gas assets: Working Interest – WI ownership is comprised of individuals or corporations who invest in oil and gas drilling. Typically, working interest owners receive 70-90% of the value of oil produced because of the risk assessed with working interest, the risk being having the financial responsibility to pay for all the operating costs. Royalty Interest – RI ownership receives a risk-free payment. This payment is paid to the mineral owner by the operator. Typically royalty owners combined receive between 10-25% of the value of the oil produced. Overriding Royalty Interest – This interest is similar to a Royalty Interest, but the owner does not own the minerals. Overriding royalties disappear if the lease expires. Typically 1-5% of the value of the oil produced.
A typical oil lease 20 years ago would be:
87.5% Oil Company (owns 100% WI)
12.5% Mineral Owner
These numbers represent the NRI or Net Revenue Interest which is the division of the revenues from the oil. The Oil company has to pay 100% of the bills, hence the 100% WI.
Modern leases are closer to:
80% Oil Company (owns 100% WI)
20% Mineral Owner
The higher royalty is due to lower risk using modern methods in drilling.

About Blackbeard Data
Blackbeard Data is a data service provider offering lease ownership data for properties throughout Texas, Kansas, Arkansas, and Ohio.
Located in Austin, Texas, it has provided lease ownership information, geospatial lease data, and analytical services to oil investors for over 20 years.
For more information, or to purchase lease ownership information, contact us at 800 762 3057 or visit us at www.BlackbeardData.com

Petro-Wealth Ownership Annual Report for Texas, 2017