Texas Legislature Investigating Effect of Oil Recession on Ranching

Nov 20, 2015

While ranchers have been rewarded for the boom in oil production, there's a downside to leasing their land to oil companies.
Credit KUT news

Texas lawmakers are trying to determine how much the decline in oil prices is hurting ranchers, reports KUT. The topic is one of the interim charges for the House Committee on Agriculture & Livestock. That means, the committee has been asked to study the issue before the next legislative session.

The relationship between oil and ranching is complicated. When oil fields are booming, royalty checks can help ranchers invest in their business. The extra income can see them through some tough times. However, ranchers can only receive royalties if they own the mineral rights to their land.

And oil activity can come at a cost, including damaged roads and struggles with pipeline companies over land use. But these drawbacks haven’t been a problem lately, as much of the state’s oil development has dropped off.

Listen to KUT's story below: