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A1. Most wells are duds. I would say I've had about a 1 in 7 success rate with them. When one does hit, the payout has been understated in the contracts. I've s
by deviantbit 3y ago
A1. Most wells are duds. I would say I've had about a 1 in 7 success rate with them. When one does hit, the payout has been understated in the contracts. I've started hiring independent land men to help pick the investments. Make sure you find one that is certified.
As for wind, you normally buy into them differently. You don't buy shares, you buy into a partnership. This is the first problem with them. They're taxed multiple times, a franchise tax, state income tax, and federal income tax, then you're taxed. But before even that, you have to buy or lease the land, pay for the electrical lines, ..., then you have transmission costs, ... If it's leased, then the landowner is getting a huge chunk. The lawsuits are ridiculous. They also over sell a project, and give these guys finders fees, and every other kind of fee you can think of for bringing in investors. It is a racket. The turbine itself won't produce enough wholesale electricity to pay for its self for years. That means everyone down the food chain is waiting to get paid.
A2. Electricity prices are reflected on the costs of the plants or farms generating the power. The market ultimately determines this price on the other side. You'll have to consult with an economist to understand how that all works. I don't know if I even know how it works.
Alternative energy has been sold to make a few people rich. You have the guys that believe the sky is falling (REMEMBER: Greenland was Green) and are perpetuating a lot of this. We have pollution problems, not climate problems. This needs to be put back into perspective. Save the rainforest, protect it, but don't tell people solar is going to stop pollution, and save the rainforest. Stop cutting down the rainforest to put up wind turbines.
A well can be capped and cleaned up. Once solar farms have stopped making money, which you will see soon, you will have a horizon of wind turbines falling apart and creating a bigger problem than a well. Energy isn't free. There is no such thing as carbon-neutral energy production.