AMARILLO, TX (KFDA) - Online auctioning could be the new normal for struggling buyers and sellers of oil and gas.
Since December 2014, Texas has lost about 76,000 jobs in oil and gas production. But the internet is giving struggling oil companies the opportunity to auction off their fields and leases to try to fend off the shale revolution.
Many of those companies are going to the biggest online auctioneer and broker of oil and gas properties -- one of which is based right here in Amarillo.
EnergyNet was the first to sell oil and gas property on the internet in February 2000. No one would have guessed that auctioning property online would be a success, but this business would later benefit both gas and oil buyers and sellers.
"Years ago the only way that people could sell their oil and gas leases would be to try to sell them to a neighboring oil and gas producer and hope that they can do it and hope that they could get a good price," said Judy Stark, Executive Vice President of PPROA. "But with new technology, that whole scope of service is obsolete now. So, now with the online auctions it's allowed independent oil and gas producers or really major oil and gas producers sell mineral rights and land."
Online auctioning provides buyers and sellers an easy and more organized way to auction and buy property.
"When we take a property, we go through all those boxes of data and we present it in a uniform manner for the buyer so it's extremely simple for the buyer to evaluate a property," EnergyNet CEO Bill Britain said. "Another thing that we do, we reduce all of the properties to all the smallest strategic unit that is sell-able and that may be a couple wells, a lease, it could be a field but that way the buyers are only looking at what they are interested in."
About one third of the world's oil companies are at high risk of going bankrupt in 2016, but the internet is giving these oil companies the opportunity to reach buyers that they would have otherwise missed in live auctions.