Royalty interest in the oil and gas industry refers to the ownership of a portion of a resource or the revenue it produces from the extraction of the minerals (oil, gas, and LNG) underneath the surface. A company or person that owns a royalty interest does not bear any operational costs needed to produce the resource, yet they still own a portion of the resource or revenue it produces.  Hundreds of millions of dollars of passive income are paid out yearly to royalty interest owners with minimal or no cost to the interest owner.

One of the main advantages of owning royalty interests is the potential for long-term passive income. Shale Plays have seen production last over 50 years. As long as minerals are being extracted and sold, the royalty interest owner will receive monthly payments. These oil, gas, and LNG revenues can provide a steady stream of passive income.

Oil and gas royalties are traditionally seen as a conservative yet consistently lucrative investment. Oil royalties’ ownership provides the advantage of monthly passive income without the burdens of oil well management, maintenance, or additional monthly expenses.  Also, if the operator decides to further develop a field, in which you own the mineral rights to the acreage, this will only increase your monthly passive income, with no money out of your pocket for any new drills. 

Investing in oil and gas mineral rights offers distinct opportunity for owners seeking a stable, diversified addition to their portfolio with minimal risk as well as a tangible asset that has proven long-term value.  Ownership requires passive or minimal active management, enabling owners to earn revenue without significant time commitments that you incur in real estate investments.  Also, ownership can be easily transferred or sold to another owner at any point in time in the future.