Who's Winning, Who's Losing -- October 5, 2021

Shale, some of those who make money from the US shale oil and gas industry:

• blue collar (roughnecks, drilling and fracking, infrastructure, truckers)
• white collar (geologists, lawyers, landmen)
• CEO, directors, bankers
  
• venture capitalists
• major investors
• mom-and-pop retail investors
  
• mom-and-pop mineral owners
• surface owners (often farmers)
  

So, of the categories above, where is the biggest shift, taking into account the data at this article?

Comments:

• during a boom, the mom-and-pop mineral owners do particularly well, but in the manufacturing stage, their returns may drop a bit;
• in the current situation, when shale operators are refusing to go crazy with drilling, and North Dakota production drops from second place to third place, mom-and-pop mineral owners will see a drop in royalties -- unless the price of oil increases significantly

Derivatives:

• North Dakota dropping from second place to third place is a non-story; but a great story, nonetheless

In other words:

• if one's primary income from shale tends to be from the mineral rights, it might not look so good now, except for the fact that less production is being offset by higher prices;
• if one's primary income from shale is through investing in shale companies like Devon, CLR, etc., now is a pretty good time -- see the linked article above.

Bottom line:

• I'm lovin' it.