Oil Making 'Overnight Millionaires' in North Dakota

[Canuck_Buck]

BEULAH, N.D."” Oscar Stohler was raised in a sod house in western North Dakota and ranched there for nearly seven decades. He never gave much thought to what lay below the grass that fattened his cattle.

http://www.foxnews.com/story/0,2933,374243,00.html

State and industry officials say North Dakota is on pace to set a state oil-production record this year, surpassing the 52.6 million barrels produced in 1984. A record number of drill rigs are piercing the prairie and North Dakota has nearly 4,000 active oil wells.

The oil boom has spurred several "Jed Clampett-like" tales of ordinary folks getting rich, said Tom Rolfstad, the economic development director for the city of Williston.

Rolfstad said he hasn't spotted any Ferraris or Rolls Royces in town, though several people can afford them now.

"I'm seeing a lot more big, shiny gas-guzzling pickups," he said.

....Nice for them eh ? Same thing is happening north of the border, it's drilling mayhem.

[Big Duane]

I thought oil production was down, you know, supply down, demand strong = higher prices ..... that kind of deal ?

[Charlie P]

In my area people are getting $2,500 an acre just let companies look for natural gas on theire property. Royalities if they do drill and find NGis about $200,000 a month.

[DuckJunkie]

That story is pretty neat, sounds like that could not have happen to a better couple, a old rancher and his wife.

[kevin1]

Indiana used to be a major oil producing state, if a company thought there was any under my property they could put a well in my front yard so long as I get my 4%.

[ipscshooter]

ORIGINAL: kevin1

Indiana used to be a major oil producing state, if a company thought there was any under my property they could put a well in my front yard so long as I get my 4%.

4% is pretty cheap... Here in Texas, royalties are typically 1/8th.