Oil & Gas Asset Acquisition Websites Growing Rapidly During Market Bust

OKLAHOMA CITY - March 25, 2015 - PRLog -- As oil prices took more of a loss last week, a large number of oil exploration companies, investors, and independent owners of oil production related assets, are feeling the crunch of decreased cash flow and a major lifestyle change. The cost of well completion, extraction, transport, maintenance, and refining has remained of the garden-variety, leaving those with active wells, barely breaking even at times and stretching out financing on what were earmarked as short term investments for oil production.

The million dollar question, that analysts are trying to hypothesize on are: When will oil prices increase and what will the average cost of oil park at, when the market balances out. With most companies taking a bearish outlook on the future answer to these questions, an abnormally large amount of companies, investors, and individuals have decided to divest: active production, royalties, mineral rights, and core leases within major shale plays. At the winter NAPE convention in Houston, TX, where worldwide energy exploration companies converge to raise funding for oil and gas related projects, most companies were marketing large amounts of usually sought after assets, for low cost or at a loss.

The oil and gas investment sector, which is typically known as a seller’s market, has rapidly transformed into a buyer’s market for non-traditional investors seeking a long term lucrative investment at half the cost. Website and mobile investing services such as ScottTrade and eTrade have traditionally transformed everyday people into stock market investors and portfolio managers. Up and coming oil and gas asset listing sites are becoming a similar trend among amateur investors looking for a long term payoff in oil production, royalties, or leases.

Productionbrokers.com, an Oklahoma City based website, handles listings, auctions, and negotiated sales of: oil production, mineral rights, royalties, and oil & gas leases. The site started seeing a large spike in traffic when oil market pricing declined rapidly in winter of last year. “On the negotiated sales and listing sections of Productionbrokers.com is an ecommerce marketplace for investors, capital groups, oil and gas exploration companies, and anyone looking for involvement of: investments, divestments, and acquisitions of oil and gas related properties or royalties…Traditionally, in this market, groups are looking to divest or flip leases, but at the present time we are seeing more and more individuals join the site who are looking to buy up all the production they can get their hands on.” Stated Tom Field with Productionbrokers.com.

With the current upward trend taking place with these types of websites, it will be interesting to see how the current large number of oil and gas investments pay off within the next 5-10 years. If you examine the historic data of the oil market, a downturn may make an investment feel stagnant for two to three years, but eventually, it comes out smelling clean on the other side.