This doesn't square well with publicly traded companies who have to ensure their operation is maximally profitable in the short term. They'd pump the place dry, then find a way to turn sand into money.
This doesn't square well with publicly traded companies who have to ensure their operation is maximally profitable in the short term. They'd pump the place dry, then find a way to turn sand into money.
If you are a shareholder in a corporation set up to own the resource and you want to maximize your profit, you might sell your shares rather than push the corporation to dump all the water for cash now.
A recent study found that real restate agents take longer to sell their own houses than they take to sell other people's. Why don't they sell quick so they can have more cash quick? Because they know it pays to wait.
Every resource has a current value and future value. If a resource will fall in value over time, you'd want to sell it all now. If water is scarce in an area, this is very unlikely to be true, especially if its population is increasing.
That's why J. G. Wentworth is in business, to profit from people who understand it.
But in business and most every discussion I can recall about business models, having a reliable stream of income is valued. People buy real estate and rent it out to establish such a stream of income.
And, if you are able to avoid earning all your cash now and instead earn o=it over time, you reduce and defer your taxes too.