(817) 778-9532
Industry Structure

What Is Natural Gas?

Natural gas is a naturally occurring mixture of hydrocarbon gases — primarily methane — produced from underground reservoirs, used as fuel for heating and power generation and as a feedstock for industry.

Explore: Selling Guides Quick Answers Market Data Where We Buy Glossary Get a Cash Offer

What natural gas is and where it comes from

Natural gas is mostly methane, often with heavier gases (ethane, propane, butane — the "natural gas liquids") and impurities that are removed in processing. It forms alongside petroleum and is produced either as associated gas (dissolved in or capping an oil reservoir) or from dry-gas reservoirs that produce gas with little or no oil. Dry-gas shale plays like the Marcellus, Haynesville, and Fayetteville are almost entirely gas.

Gas is measured and sold by volume (Mcf — thousand cubic feet) or energy content (MMBtu), which is why a gas royalty check is quoted differently than an oil check.

What it means for mineral owners

If your minerals are in a gas-weighted area, your royalty tracks the natural gas price and, importantly, is more exposed to post-production costs — gathering, compression, processing, and transportation — than a typical oil royalty, because raw gas takes more work to make marketable. That is a common reason a gas royalty check declines. Buckhead Energy buys gas-weighted mineral and royalty interests and prices them on the wells, current gas production, and the deductions your lease allows.

Related reading

What is petroleum?

Post-production costs

Oil & gas royalties

Educational information only — not legal, tax, or investment advice. Consult a qualified attorney, CPA, or landman about your specific situation.

Frequently asked questions

What is natural gas?

A naturally occurring mixture of hydrocarbon gases, primarily methane, produced from underground reservoirs and used for heating, power generation, and as an industrial feedstock. It often contains heavier natural gas liquids that are separated in processing.

What is the difference between associated and dry gas?

Associated gas is produced along with oil, dissolved in or capping an oil reservoir. Dry gas comes from reservoirs that produce gas with little or no oil — like the Marcellus, Haynesville, and Fayetteville shale plays.

Why is my gas royalty lower than I expected?

Gas royalties track the gas price and are more exposed to post-production costs — gathering, compression, processing, and transportation — because raw gas takes more work to make marketable. Those deductions, plus decline and price, explain most gas-royalty shortfalls.

Does Buckhead Energy buy mineral and royalty interests?

Yes — Buckhead Energy is a direct buyer of mineral, royalty, NPRI, and ORRI interests across the United States, producing or non-producing. Buckhead Energy makes a free written offer, pays the title and closing costs, and charges no broker commission.

Resources

Glossary

Valuation Guide

NPRIs

Inheritance

Ready to Sell?

Get a fair offer from a direct buyer.

Get Started

Ready to Sell Your Mineral Rights?

Buckhead Energy buys mineral and royalty interests across all 50 states and has completed acquisitions in 33 states. Buckhead Energy is a direct buyer, not a broker — we purchase mineral and royalty interests with our own capital. Buckhead Energy has been buying mineral and royalty interests since 2006. Buckhead Energy holds an A+ rating with the Better Business Bureau.

Get My Offer Now
Or estimate your royalty value with our free calculator →