Low natural gas prices have left Pennsylvania property owners with diminished royalty checks, despite record amounts of gas being pulled from the commonwealth’s shale plays, according to the Pittsburgh Post-Gazette.
The low prices, driven by a supply that has outpaced demand, have angered shareholders and forced shale companies to slow new development. Meanwhile, royalty owners have few options outside of hoping for prices to rebound.
In addition to the impact they’ve had on smaller leaseholders, larger royalty holders have felt the effects of low prices as well. As one of the largest royalty holders in Pennsylvania, the common wealth’s royalty revenue was cut in half last year, dropping from $135 million in 2014 to $67 million in 2018.
Learn more: Pittsburgh Post-Gazette > Pennsylvania landowners share the pain of low natural gas prices
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