2024 Archives - Oil and Gas Outsourcing and Mineral Management

The Energy Backbone of AI: Powering Data Centers

Posted on September 4, 2024September 5, 2024 by Valor

Exploring the pivotal role that energy sources play in driving cutting-edge technologies.

Industries and companies across the globe are eagerly adopting artificial intelligence (AI) to streamline their operations and enhance efficiency, and the energy industry is no exception. They’re constantly exploring AI to not only improve processes, but also boost productivity. However, there’s an interesting twist for the oil and gas and renewables sector. Unlike other industries, they don’t just benefit from AI; they also power it. The very energy that oil, gas, and renewables like solar and wind provide is what keeps the AI data centers up and running. Despite the push towards digital transformation, many people don’t realize just how much energy AI consumes, most of which still comes from traditional sources like oil and gas.

AI’s growing energy needs

Data centers, the backbone of AI operations, are among the largest consumers of electrical power in the tech industry. These facilities require continuous power for data processing, storage, and cooling systems. As AI technologies advance and become more widespread, the energy required to support them intensifies. According to projections, the overall electricity consumption from data centers, AI, and cryptocurrency could reach double the levels of 2022 by 2026(IEA), demonstrating unprecedented rapid growth. According to CNBC, AI data centers in the U.S. could consume as much electricity by 2030 as some entire industrialized economies (CNBC).

Why data centers require so much energy

Data centers require substantial energy primarily due to their non-stop operations, extensive cooling needs, and redundancy requirements. Servers in these centers run continuously to process and store vast amounts of data, demanding persistent energy use. Cooling systems, which prevent equipment from overheating, consume almost as much energy as the servers themselves. Furthermore, data centers maintain redundant systems to ensure reliability, doubling the energy required for both primary and backup systems. As the demand for data storage and processing escalates, particularly with the growth of AI, these facilities must expand, further increasing their energy consumption. This continuous and intensive use of energy is compounded by the need for scalability and the inherent operational demands of maintaining a 24/7 service environment.

The surprising connection

While advancements in renewable energy are on the rise, the immediate demand for power is largely being met by established sources, predominantly fossil fuels. The U.S. Energy Information Administration reports that in 2020, about 60% of the world’s electricity was generated by oil, gas, and coal. This dependency highlights a critical connection between AI’s growth and the traditional energy sector, particularly oil and gas.

As AI and data centers’ energy demands grow, incorporating renewable energy sources like solar, wind, and hydroelectric power becomes increasingly relevant. These energy sources will need to provide a significant and consistent portion of the power needed by AI data centers.

Impact on the oil and gas industry

This increasing demand for energy not only underscores the importance of oil and gas in enabling current AI capabilities but could also present significant growth opportunities for the sector. As AI usage expands, so too does the need for energy.

Conclusion

The relationship between AI, oil and gas and renewables is complex and symbiotic. While AI promises enhanced efficiencies and automation, its growth is intricately linked to various energy sources. As we continue to embrace AI, understanding and managing this dependency will be crucial for sustainable development. Stakeholders are encouraged to consider how the energy demands of tomorrow’s AI-driven technologies will be met and the role both traditional and renewable energy sources will play in that landscape.

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The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state

Valor | Energy Connection – Sep. 4, 2024

Posted on September 3, 2024September 4, 2024 by Valor

September 4, 2024 Edition

At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.

Shell to cut 20% of workers in oil and gas exploration units
Summary: Shell plans to cut jobs in its oil and gas exploration divisions as part of a broader cost-cutting strategy under CEO Wael Sawan, focusing on efficiency and reducing operating expenses.
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Oil drops 5% with resolution to Libyan dispute in sight
Summary: Oil prices dropped to their lowest in nearly nine months due to signs of a resolution in Libya’s oil production dispute and concerns over weak demand from China.
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AI demand could strain electrical grid in coming decade
Summary: U.S. data centers are expected to consume massive amounts of electricity by 2030, potentially straining the grid as coal plants retire faster than renewable energy sources can be developed.
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US drillers cut oil and gas rigs for third week in a row
Summary: U.S. energy firms reduced the number of active oil and gas rigs for the third consecutive week, with the total rig count hitting its lowest level since June amid declining gas prices and reduced capital spending.
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Oil and gas giants invest in energy transition
Summary: Major oil and gas companies, including BP and ExxonMobil, are investing £600,000 ($788,000) in a University of Aberdeen initiative to reduce emissions and support energy transition research.
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Marathon Oil shareholders vote in favor of $16 billion ConocoPhillips deal
Summary: Marathon Oil has received stockholder approval for its pending merger with ConocoPhillips, with the transaction expected to close by late 2024, subject to regulatory clearance.
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Valor Employee Spotlight | Jason Nadaskay

Posted on August 28, 2024September 5, 2024 by Valor

Welcome to our Valor Employee Spotlight series! In this edition, we’re thrilled to introduce Jason Nadaskay, Chief People Officer. Jason is a vital member of the Valor family and we can’t wait for you to learn more about him!

Background and Experience

Jason is a seasoned educator and coach with over a decade of experience, most recently serving at Maury County Schools in Spring Hill, Tennessee. Throughout his career, he has taught various subjects, including Advanced Macroeconomics and Psychology, and coached sports teams to significant achievements, such as winning district championships and helping student-athletes earn college scholarships. His leadership and teaching consistently fostered academic and athletic excellence.

Before his career in education, Jason worked as a Management Consultant at IMPACT Management Systems, where he played a key role in expanding the company’s operations and providing strategic planning and management consulting. Additionally, he served as an Associate Pastor and Business Administrator, overseeing ministries and handling business operations. Jason holds a Master’s degree in Marriage and Family Therapy/Counseling and a Bachelor of Science in Christian Ministry from Abilene Christian University. In 2023, Jason gained his Associate Professional in Human Resources® (APHR) certification in pursuit of a role in human resources, reflecting his ongoing commitment to professional growth and development.

Role at Valor

In his current role at Valor, Jason oversees comprehensive benefits management, ensuring the company offers competitive packages that enhance employee satisfaction. He leads recruitment efforts to attract and retain top talent aligned with Valor’s core values and objectives. Jason is instrumental in implementing performance management systems that evaluate and improve employee productivity. He also streamlines HR processes to ensure efficiency and compliance with legal and ethical standards while cultivating a positive organizational culture that fosters inclusivity and motivation. Additionally, Jason develops and executes training programs to equip employees with the skills and knowledge they need, coordinates onboarding processes for new hires to ensure smooth integration, and manages HR administration, including payroll, 401(k) administration, and PTO tracking. He has also developed initiatives to align Valor’s mission with both short- and long-term impacts, creating opportunities for employee growth and development.

As Valor’s champion of creating a healthy culture, Jason organizes monthly birthday and milestone celebrations, including wedding and baby showers, ensuring no special moment goes unnoticed. He launched a “Valor families” Slack channel to encourage personal connections and coordinated the Valor Olympic Games, a 2-week celebration with four offsite events. Jason also organizes themed events, such as for Valor’s 6th anniversary and Memorial Day celebration, featuring potlucks, catered lunches, and team-building activities. For big client wins, he often sets up Friday office happy hours and raffles.

Jason’s Favorites

Outside the Office

Jason enjoys spending time outside the office eating great BBQ, being with his family, hiking, and participating in various church activities.

Favorite Drink/Food

Jason’s favorite food and drink are a perfect Texas combo—brisket and Dr. Pepper.

What Jason Loves Most About Valor

Jason loves two things most about Valor: the amazing, hardworking, and approachable people, and the company’s growth and stability, which he feels will yield long-term success thanks to their exceptional product, services, and team at Valor.

Jason is a remarkable example of the talent we have here at Valor. Stay tuned for more employee spotlights to learn about the incredible individuals who make Valor a great place to work!

Valor Employee Spotlight | Hannah Jones

Posted on August 28, 2024August 29, 2024 by Valor

Welcome to our Valor Employee Spotlight series! In this edition, we’re thrilled to introduce Hannah Jones, our Marketing Director. Hannah is a vital member of the Valor family and we can’t wait for you to learn more about her!

Background and Experience

Hannah is an accomplished marketing professional with a diverse background spanning traditional and digital media. She graduated Magna Cum Laude from Texas Christian University, earning dual Bachelor of Science degrees in both Psychology and Communications. Her career began at The Richards Group, where she worked on the Chick-fil-A account as a Brand Manager. In this role, she focused on out-of-home, TV, radio, and point-of-purchase in-store marketing collateral, gaining valuable experience in managing high-impact campaigns.

Hannah then transitioned to iProspect, a global digital marketing agency, where she honed her skills in digital marketing. She oversaw a team managing various channels including PPC, display, and paid social campaigns for brands such as Abercrombie & Fitch and Neiman Marcus. Seeking new challenges, Hannah moved to Cook Children’s as a marketing specialist, where she applied her expertise in a healthcare setting. During this time, she also served as an adjunct professor at TCU, teaching a marketing communications course at the Neeley School of Business. These diverse experiences have shaped her into a versatile marketer, leading her to her current role at Valor, where she has been since 2021.

Role at Valor

In her current role at Valor, Hannah oversees the creation and implementation of multi-channel marketing campaigns, ensuring consistent messaging across digital, print, and social media platforms. She plays a pivotal role in coordinating conferences and events that showcase Valor’s mineral management software and outsourcing services, collaborating closely with cross-functional teams to align marketing strategies with broader company objectives. Hannah excels at establishing and maintaining relationships with key stakeholders, media, and external agencies, enhancing Valor’s public profile and strategic partnerships.

Hannah is also responsible for preparing and distributing press releases to communicate key company milestones, new hires, and other significant achievements to the media and public. Additionally, she designs and implements email marketing campaigns and automation to engage clients and update them on relevant information. Managing the company blog and content creation, Hannah ensures that Valor addresses topical insights to educate and engage various audiences. Her hands-on proficiency with social platforms, including Facebook, Instagram, Twitter, and LinkedIn, coupled with her expertise in content and presentation creation using PowerPoint and Canva, makes her an invaluable asset to the Valor team.

Hannah’s Favorites

Outside the Office

Outside the office, Hannah enjoys spending time with her husband and three kids, especially engaging in outdoor activities like swimming, taking family walks, or playing in their backyard. She also loves baking, gardening, listening to podcasts, and sneaking in much-needed naps on the weekends.

Favorite Drink/Food

Hannah’s love for food makes it hard to choose favorites, but sushi, Thai food, and a good steak top her list. She lives for her morning coffee and enjoys the occasional margarita.

What Hannah Loves Most About Valor

Hannah loves the variety of roles her job at Valor allows her to take on, and she especially appreciates the flexibility it offers, which is crucial for managing her busy life with three young children.

Hannah is a remarkable example of the talent we have here at Valor. Stay tuned for more employee spotlights to learn about the incredible individuals who make Valor a great place to work!

Valor | Energy Connection – Aug. 26, 2024

Posted on August 26, 2024August 26, 2024 by Valor

August 26, 2024 Edition

Exxon Projects 2050 Oil Demand to Equal Current Levels, Surpassing BP’s Estimate by 25%
Summary: Exxon Mobil expects global crude demand to remain above 100 million barrels per day through 2050, a forecast 25% higher than BP’s, supporting its ambitious production growth plans.
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Texas Upstream Employment Shows Uptick Amid Record Permian Production
Summary: Employment in Texas’ upstream oil and gas industry rose by 1,600 jobs in July versus June, according to the Texas Independent Producers and Royalty Owners Association (TIPRO).
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New Zealand to Push Through Law to Reverse Ban on Oil and Gas Exploration
Summary: New Zealand announced it will pass laws by year-end to lift the ban on offshore oil and gas exploration and quickly remove regulatory barriers to LNG imports amid energy shortages. The law would end the ban, in place since 2018, on exploration outside onshore Taranaki, an energy-rich region on the country’s North Island as the right-of-centre government plans to lure investment to the country’s oil and gas sector.
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Oil Prices Surge Nearly 3% Amid Middle East Tensions and Libyan Production Cuts
Summary: Oil prices surged nearly 3% on Monday due to escalating Middle East tensions and production cuts in Libya, raising concerns over global supply. Oil prices jumped after Libya’s eastern-based government announced the closure of all oil fields on Monday, halting production and exports.
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Billions Flow into U.S. Offshore Wind Despite Ongoing Setbacks
Summary: The US aims to significantly expand its offshore wind capacity with strong government support, but the industry has faced setbacks like project delays and financial challenges for major players. Despite this, foreign investors such as Equinor and Vestas remain committed, drawn by the potential for growth and government incentives.
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U.S. Oil and Gas Rig Count Falls for Second Week
Summary: New data from Baker Hughes on Friday shows a decline in the total number of active oil and gas drilling rigs in the United States this week, dropping by 2 to 586. This is down from 642 rigs at the same time last year.
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Valor | Energy Connection – Aug. 13, 2024

Posted on August 12, 2024August 13, 2024 by Valor

August 13, 2024 Edition

US Drillers Add Oil & Gas Rigs for Third Time in Four Weeks
Summary: The oil and gas rig count, an early indicator of future output, rose by two to 588 in the week to Aug. 9. Despite the week’s rig increase, Baker Hughes said the total count was still down 66 rigs, or 10% below this time last year.
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U.S. Oil Industry Pumps Record Volumes with Fewer Workers
Summary: Upstream and oilfield services jobs are declining, not due to falling production, but likely because of increased efficiency, technological advances, and ongoing industry consolidation.
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U.S. Crude Oil Posts More Than 4% Weekly Gain
Summary: U.S. crude oil gained more than 4% this week as recession fears eased and the risk of a wider war in the Middle East that could disrupt production and transportation loomed over the market. Oil advanced as the S&P 500 traded higher Friday, erasing most of its losses from a steep sell-off earlier in the week.
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Texas Sees More Negative Prices as Natural Gas Markets Flip
Summary: Natural gas prices in West Texas have turned negative on 57 trading days this year, a record high potentially driven by an oversupply from the Permian Basin. Energy companies have signaled recently that they are curbing gas production.
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OPEC Cuts Oil Demand Growth Forecast, Highlighting Dilemma Over Oct Hike
Summary: OPEC has reduced its 2024 global oil demand growth forecast due to weaker expectations for China, highlighting challenges for OPEC+ in increasing production from October, despite ongoing output cuts since 2022.
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Houston Positioned to Become Crude Oil Export Leader as U.S. Production Grows
Summary: As U.S. crude oil production peaks, the Port of Houston is poised to become a major export hub, benefiting from increased oil flows from the Permian Basin and the ongoing expansion of the Houston Ship Channel.
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Valor Employee Spotlight | Tim Stackpole

Posted on July 22, 2024July 22, 2024 by Valor

Welcome to our Valor Employee Spotlight series! In this edition, we’re thrilled to introduce Timothy “Tim” Stackpole, Staff Accountant. Tim is a vital member of the Valor family and we can’t wait for you to learn more about him!

Background and Experience

Tim’s professional journey spans various roles before he specialized in accounting. His career began with positions in historical research, private investigation, logistics, and human resources, reflecting his adaptability across multiple sectors. In 2015, Tim transitioned to the accounting field, joining a CPA firm that caters to a diverse clientele across various industries. He brings this extensive cross-industry experience to the Valor team as a former senior accountant at Optimum Healthcare Management, a nursing facility. Tim holds a Bachelor of Arts in History from the University of North Texas and a Bachelor of Science in Accounting from Tarleton State University.

Role at Valor

As a staff accountant at Valor, Tim plays a vital role in helping to maintain financial day-to-day operations within our accounting team. He is instrumental in conducting month-end close activities, ensuring accurate account reconciliations, and preparing monthly journal entries. His responsibilities also include generating monthly financial reports and providing support to the Chief Accounting Officer as needed.

Tim’s Favorites

Outside the Office
Outside the office, Tim enjoys time with his wife and four children, often found cheering them on at sporting events with unmatched enthusiasm and volume. He also enjoys competitive shooting and perfecting the art of smoking meats in his backyard.

Favorite Drink/Food
“I have a burgeoning appreciation for scotch but enjoy a bevy of whiskeys best paired with steak or brisket.”

What Tim Loves Most About Valor

“What I love most about Valor is the people. No matter the deadlines, workload or task at hand, the people of Valor are supportive, and friendly and I thank God daily that I get to work with such a wonderful group.”

Tim is a remarkable example of the talent we have here at Valor. Stay tuned for more employee spotlights to learn about the incredible individuals who make Valor a great place to work!

5 Benefits of a Mineral Management Partner

Posted on June 12, 2024July 3, 2024 by Valor

Discover the benefits of partnering with Valor for expert mineral management services

At Valor, we are dedicated to delivering exceptional mineral management services that optimize your operations and enhance profitability, leveraging our expertise to provide you with unparalleled support and strategic solutions. Benefits include:

1. mineral.tech® proprietary software
Our software is constantly being updated and optimized to ensure it evolves with our client’s needs and does not become stagnant. Our proprietary mineral management software supports royalty tracking and provides real-time royalty reporting, asset visualization and accounting reports. It allows you to access your data 24/7, from anywhere in the world. It also acts as a digital filing cabinet, securely storing all of your asset-associated documents (leases, deed conveyances, revenue statements, JIBs, tax forms, etc.). This can greatly benefit those looking to pass on mineral assets to family members. It is our goal to support you in setting up your inheritors with clear, well-thought-out directions for when the time comes for them to take on your mineral rights.
2. More than a SaaS company
We do all the work for you, from onboarding to daily management of all mineral assets. Unlike other providers, we don’t simply onboard your assets and leave them static; at Valor, we proactively manage all mineral assets, actively digging deeper with dedicated teams focused on resolving any issues (ex: suspended funds), ensuring comprehensive and continuous oversight from start to finish.
3. Industry experts
We were founded by multi-generational oil and gas professionals & have a dynamic team with diverse expertise to meet your mineral management needs. We are very proud of the award-winning team we have built at Valor. Our team is comprised of data analysts, in-house landmen, full-time accounting professionals, CPAs and full-time land professionals, including CPLs, CMMs, CTFA, CPLTA, and JD. Our team members are not only part of esteemed groups like Mensa and YPO but have also earned accolades from Inc. 5000 and other prestigious organizations, demonstrating our commitment to excellence in serving our clients.
4. Saved time
Our goal is to allow our clients to spend time focused on their core business operations, not the day-to-day nuances of mineral management. We recognize the complexities and demands of managing mineral assets. These intricate assets require attention to detail and a deep understanding of the regulatory and financial landscapes, which can be overwhelming for many. Our team of experts is equipped to handle all aspects of mineral management, from the meticulous tracking of leases to ensuring compliance with ever-changing regulations.
5. Peace of Mind
Clients can have peace of mind knowing that their assets are being managed by professionals who are committed to maximizing their value and ensuring all administrative tasks are handled accurately and efficiently.

Partnering with Valor offers a strategic advantage that goes beyond conventional mineral management services. Our expertise, tailored solutions, and commitment to excellence ensure that every aspect of your operations is optimized for success. With Valor, you gain a partner that is not just a service provider, but a key player in your mission to achieve greater efficiency, compliance, and profitability in the competitive landscape of the oil and gas industry.

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Understanding the True Value of Your Mineral Assets

Posted on June 6, 2024June 13, 2024 by Valor

For many mineral owners, understanding the true worth of their assets can be a daunting task. This challenge is particularly acute for those who have inherited mineral rights, as they may not be fully aware of the potential value locked within these assets. Whether you are seasoned in the world of mineral transactions or new to the nuances of mineral rights, recognizing the importance of these assets is crucial.

The Complexity of Mineral Rights Valuation

Mineral rights are not just another piece of property. They represent a potential ongoing income through royalties, bonuses, and other payments tied to the extraction and sale of natural resources. Unlike real estate, the value of mineral rights can fluctuate dramatically based on market conditions, regulatory changes, and technological advancements in extraction methods.

For those who inherit these rights, the sudden ownership of such potentially valuable assets can come with a host of questions: What are they really worth? Is now the right time to sell? How do I evaluate an offer?

The Risk of Rushed Decisions

It’s not uncommon for mineral owners, particularly those who are new to such assets, to receive unsolicited purchase offers. These offers can be tempting, especially if they come during times of financial need or when the market is peaking. However, rushing into a sale without a proper understanding of the value of your mineral rights can lead to regrettable decisions. Selling your rights without thorough evaluation often results in receiving far less than what your assets are truly worth.

How Valor Helps

At Valor, we understand the complexities involved in managing and valuing mineral rights. That’s why we provide our clients not just with expert valuation services, but with continuous support that makes navigating these decisions easier.

Working with Valor means having a partner that is committed to ensuring you receive the maximum value for your mineral rights. Our expertise in the oil and gas industry, coupled with our dedication to client education, empowers mineral owners to make informed decisions that best serve their financial interests. Whether you’re contemplating a sale or simply seeking to understand the full potential of your assets, Valor is here to guide you every step of the way.

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Unlock the Future by Digitizing the Past with Valor

Posted on May 24, 2024June 20, 2024 by Valor

In the age of digital transformation, the way we handle and preserve historical records is evolving. At Valor, we specialize in converting your physical files into digital formats, offering a streamlined and secure solution to manage your invaluable documents.

Many of our clients have found themselves overwhelmed with physical documents—ranging from essential title documents and deeds to tax records and more, stored in boxes, entire rooms, or even off-site storage units. Valor’s dedicated team is here to change that. We scan, organize and digitally store all your historical paperwork, transforming your physical archives into a neatly organized digital library.

Why Go Digital? Here are a few compelling reasons:

Accessibility: Digitize your documents and gain the ability to access them anytime, anywhere. Whether you’re in the office or on the go, your records are just a few clicks away.
Safety and Security: Paper is vulnerable to loss, damage, and degradation. Digital documents are securely stored and backed up, protecting them from physical harm and ensuring they last for generations.
Space Efficiency: Reclaim your office space! Digitizing records eliminates the need for physical storage, freeing up space and reducing clutter in your work environment.
Disaster Recovery: In the event of a disaster, digital records can be quickly recovered, ensuring business continuity and security of information.
Organizational Ease: With digital storage, sorting, searching, and managing documents becomes effortless. Custom organization and indexing mean that everything you need is at your fingertips, exactly how you want it.

At Valor, we are committed to ensuring that your transition to a digital archive is smooth and beneficial. Our process not only safeguards your documents but also enhances accessibility and efficiency.

About Valor

Valor is a specialty asset management services provider that serves mineral rights owners, and oil and gas operators and investors. Valor offers mineral management services, including oil and gas accounting, land management, ownership verification and correction and lease negotiation and counsel. They created their proprietary mineral management software, mineral.tech®, to provide security, clarity and revenue optimization for their individual and institutional clients. Valor is also a leading provider of oil and gas outsourcing services for operators, partnering with companies to offer owner relations support, oil and gas accounting, regulatory compliance, and other back-office operations.

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Contact us today to learn more about how we can preserve your historical documents and better prepare you for the future.