Passive Investment: Although there are certain costs associated with royalty ownership it is relatively management free.
Tax Benefits: Royalty owners can deduct a portion of their annual royalty revenue as a tax deduction for "depletion."
Inflation Hedge: Oil and gas is generally considered as a protection against inflation. When other goods and services rise, oil and gas prices typically increase as well.
Future Value: One of the intangible values of oil and or gas is the unknown future value. Although the United States has been explored for oil and gas, more than any other country, the possibility of an overlooked oil or gas field will always exist somewhere.
Sentimental Value: Royalties are often inherited from a family member. As such they carry a connection to the past that is treasured by the recipients and certainly has some value.