Can you imagine finding oil in your backyard and thinking you're going to become a millionaire? It sounds like the perfect dream, but the reality is far from simple. Behind this "treasure" there are laws, bureaucracies and costs that can turn this find into a real headache.
Did you know that, in many cases, the oil in your soil may not even be yours? And even if it is, exploiting and profiting from it involves huge challenges, from legal authorizations to high investments in technology and infrastructure.
Want to know if you can really get rich? Read on and find out everything you need to know about what happens when oil is found on a property.
Underground Property
In many countries, legislation establishes that the subsoil and its mineral resources belong to the state, and not to the owner of the surface. In Brazil, for example, the Federal Constitution determines that oil and other mineral resources are the property of the Union.
Licensing and Concessions
To explore for oil, it is necessary to obtain specific licenses and concessions from the government. These concessions are usually auctioned off to oil and gas companies that demonstrate the technical and financial capacity to explore and develop the resources.
This process involves strict regulatory and environmental control to ensure that exploration is carried out in a sustainable and safe manner.
Profit sharing
Even if you don't own the oil you find, you may receive financial compensation for the use of your land. In many cases, landowners where oil is found receive royalties - a percentage of the profits made from extraction.
Example of Success
A notable example is the state of Texas in the United States, where many landowners have become millionaires after finding oil on their property. However, the legislation in the US is different from that in Brazil, allowing landowners to also own the mineral resources.
In addition, the infrastructure and oil industry were already well developed in the region, facilitating the exploration process.
Practical example: The Santos Basin
In Brazil, the discovery of the pre-salt layer in the Santos Basin is a practical example of how oil exploration can transform a region. Petrobras, along with other partner companies, has invested billions of dollars to develop the infrastructure needed to exploit these reserves. This operation has generated jobs, economic development and revenue for the government through taxes and royalties.
Comparison between Brazil and the United States
The percentage that a Brazilian earns from finding oil on his land is quite different from the percentage that a North American can earn due to the different legislation and royalty practices in each country.
Brazil
In Brazil, ownership of mineral resources, including oil, belongs to the Union, as established by the Federal Constitution. This means that if oil is found on private property, the owner of the land has no direct rights to the oil.
However, they can receive financial compensation for the use of the land, which is usually negotiated as part of the concession contracts. The percentage of royalties varies from 5% to 10% of the value of production, depending on the characteristics of the area and the volume of production.
United States
In the United States, the situation is different. In many states, landowners also own the mineral resources found underground. This means that if a landowner finds oil, they can negotiate the terms of exploration and production directly with the oil and gas companies.
Royalties paid to landowners in the United States generally range from 12.5% to 25% of the gross value of the oil extracted. In addition to royalties, landowners can also receive lease bonuses, which are initial payments made by companies in the sector to secure exploration rights.
Therefore, a landowner in the United States has the potential to earn a significantly higher percentage of the profits from oil exploration compared to a landowner in Brazil.
Countries that pay the most royalties Oil
The table below illustrates the royalty and financial compensation practices for landowners who find oil in their backyards in some of the main countries producing this natural resource. Note that legislation and practices can vary significantly between countries.
This table gives an overview of practices in different countries, but it is important to consider that legislation can change and that individual negotiations can influence specific terms and compensation.
So while the discovery of oil can open up opportunities, it is not a guarantee of instant wealth. The process is fraught with challenges and requires careful planning, technical expertise and substantial financial resources.
Ultimately, the answer to the question "If I find oil in my backyard: Will I get rich?" depends on many factors. It depends on many factors, and reality is far more complex than fantasy.
