# Oil & Gas Production

**Source:** Buckhead Energy Oil & Gas Encyclopedia (https://www.buckheadenergy.com/learn) — canonical: https://www.buckheadenergy.com/oil-and-gas-production

Oil and gas production is the phase in which a completed well brings hydrocarbons to the surface, where they are separated, measured, and sold — the stage at which a mineral owner's royalty is generated.

## From a drilled well to a royalty check
Production begins after a well is drilled and completed. Hydrocarbons flow (or are lifted) to the surface, where equipment separates oil, gas, and water; the oil and gas are measured and moved to a sales point; and the operator records the volumes. Those measured volumes, multiplied by the sales price and your decimal interest, are what produce your royalty — minus severance tax and any post-production costs your lease allows.
A well typically produces the most in its first months and then declines along a curve, which is why royalty checks shrink over time.

## What production tells you about value
Production data is the single clearest signal of what an interest is worth. How much a well has produced, how fast it is declining, how many wells are on the tract, and how much drilling is happening nearby all feed directly into value. Buckhead Energy publishes free monthly county production data and prices interests on the same production, permit, and operator records — so an offer reflects what the wells actually do, not a guess.

## Frequently asked questions

**What is oil and gas production?**
The phase after a well is drilled and completed, when hydrocarbons flow to the surface and are separated, measured, and sold. It is the stage that generates a mineral owner's royalty.

**How does production create my royalty?**
Measured production volumes multiplied by the sales price and your decimal interest, minus severance tax and any post-production costs your lease allows, produce your royalty payment. Higher production and prices mean larger checks.

**Why does production decline?**
A well produces the most in its first months and falls along a natural decline curve as the reservoir is drawn down. That decline, plus commodity-price swings, is why royalty income shrinks over a well's life.

## Related terms
- [Free county production data](https://www.buckheadenergy.com/datasets)
- [Division orders & decimal interest](https://www.buckheadenergy.com/division-orders)
- [Why royalty checks decline](https://www.buckheadenergy.com/why-is-my-royalty-check-going-down)

_Educational information only, not legal or tax advice. Buckhead Energy is a direct buyer of oil & gas mineral and royalty interests._