Accumulated depletion is a contra-asset account associated with depletable natural resources like mines. It reflects the total usage or reduction in value of these resources over time.
The systematic expensing of the cost of natural resources over their useful life. Depletion is often associated with extracting industries, such as mining, quarrying, and drilling.
A method of calculating the depreciation of a wasting asset based on the rate at which it is being used. For example, a coal mine could be depreciated on the basis of the rate at which coal is extracted from it.
A developmental drilling program involves drilling for oil and gas in areas with proven reserves to depths known to have been productive in the past. This often involves drilling additional wells in or adjacent to a field with established production.
The extractive industry involves the extraction of raw materials, such as minerals and metals, from the earth. This includes various forms of mining to obtain resources such as copper, coal, oil, natural gas, and other valuable minerals.
Free goods are items that are naturally abundant and available to satisfy demand without requiring rationing or a market price, such as sunshine. They are contrasted with economic goods.
A physical or tangible raw material commonly used in industrial processes and traded on commodity markets.
A lease bonus is an amount paid to a lessor to induce them to execute a mineral lease, entitling the lessee to explore, develop, and produce minerals from the leased area.
An agreement granting the lessee the right to extract and sell minerals from the lessor's property in exchange for royalty payments based on the value of the extracted materials.
Mineral rights are the privileges granted to an individual or entity to extract and profit from the sale of natural resources such as oil, gas, and other minerals located on or beneath the surface of a piece of land. These rights can be sold or leased separately from the ownership of the land itself.
Natural resources are actual and potential forms of wealth supplied by nature, including coal, oil, wood, water power, and arable land. These resources are vital for various industries and economic activities.
Nonrenewable natural resources are resources that cannot be replenished once they are exhausted. Examples include fossil fuels like oil, coal, and natural gas.
A form of ownership in mineral property in which the owner is responsible for operating costs. Royalties, production payments, and net profit interests are not operating interests.
A physical commodity refers to an actual, tangible commodity that is delivered to the buyer upon the completion of a commodity contract, whether it be in the spot market or futures market. Examples include agricultural products like corn and soybeans, and natural resources like gold and oil.
Real estate refers to fixed objects that serve as a boundary mark for a tract of land. It includes immoveable property such as land and buildings, along with the natural resources like water, minerals, and crops that are attached to it.
Realty, also known as real estate, encompasses land and the buildings on it, as well as natural resources like crops, minerals, or water. It involves various facets such as acquisition, sale, management, and legal transactions concerning properties.
A renewable natural resource refers to a natural resource that can replenish itself over time and is therefore not used up irrevocably. Examples include solar energy, wind energy, and forest products.
