Bearing The Storm
We have all felt the devastating impact of severe weather events over the past several years in some way. Even if you have been fortunate enough to avoid any personal experience with Hurricanes Harvey, Irma or Michael, the chances are you know someone who was not as lucky.
The estimated economic cost of all severe weather in the United States in 2017 was 16 billion dollars—the most expensive year on record.
Oil and gas currently supply around 65 percent of American energy, with approximately 80 percent of the petroleum used in the United States being produced domestically in 2017. While energy independence is a benefit to both national security and the American economy, the country’s infrastructure is also susceptible to increases in severe weather. Hurricanes such as Katrina and Harvey, in particular, wreaked untold havoc on the gulf oil industry.
BIG AND SMALL
It may seem obvious that hurricanes and natural disasters pose a threat to American energy installations, but the danger stretches beyond massive corporations such as BP, Exxon and Chevron. Weather is a concern for energy claims and leases of all kinds. Hurricanes, tornados, landslides, blizzards and all manner of meteorological problems crop for both the smallest and largest resource management projects.
The best solution for dealing with weather issues when it comes to resource management is simple—do your best not to deal with them at all. The on-site due diligence and location surveying offered by MAJR Resources is the first step to ensuring that any prospective lease is insulated from the effects of severe weather. Our qualified landmen have the knowledge and experience to help customers determine exactly how much risk is involved when it comes to steering clear of hazardous weather. GIS Mapping Services and proper assessment of any claim by a qualified landman can be worth their weight in gold when it comes to avoiding the unpredictable effects of local climates. You wouldn’t build a house in an area without knowing if there was a ten-year floodplain nearby. So why would you settle for an energy lease without knowing everything you can about the benefits and drawbacks of the location first?
While some may interpret the recent rash of severe weather with a sense of doom and gloom, optimism may actually be the better approach.
In a recent piece for Forbes, Jude Clemente took the time to explain that the American energy sector has dealt with adverse weather well in recent years. Despite the impact of Hurricanes like Irma and Harvey, oil prices have remained stable thanks in large part to how geographically diversified the American energy sector is. This is encouraging news to both prospective leaseholders and clients who are still looking to break into the energy claim market.
In addition to all of the services that MAJR Resources can provide on the legal side of energy management with easements and curative completion, do not underestimate the value of preparing for the worst while hoping for the best.