Expert: Alan H. Coogan Date: 4/17/2008 Subject: price per barrel variation
Question My family is receiving money for an active well in the Bakken Formation. Why, when the price of oil per barrel is approaching $114, are our avg. price we receive per barrel is $86.00? And, if this doesn't seem right, who do we ask or contact? Thank you.
Answer Dear Deb: The NYMEX,for delivery next month, spot market crude price so quoted on TV and top of Wall Street Journal is for light, sweet crude. The price you get is for crude oil sold one or two months ago. Moreover there are local posted prices, e.g. the "West Texas Intermediate Crude" price at Cushing. If you are getting your royalty % of the actual amount paid, that is probably the best you can expect.
AHC
