The New Oil

It has been said by some very savvy folks that “water is the new oil”.  If businessmen like T. Boone Pickens are to be believed (he’s been buying up hundreds of thousands of acre feet of water rights in west Texas for years now) the increasing scarcity of water in our state, combined with the rapid population growth will ultimately combine to make water as precious as oil is today.

As San Antonio drains the Edwards aquifer dry and DFW pipes water in from Oklahoma and Arkansas pressure will increase of municipalities to secure the future of their water resources lest they face the prospects of becoming like Atlanta .  Of all the major Texas cities, only Austin (that I know of) has taken concrete steps to assure adequate water to feed its projected growth.

Water and energy production are inexorably tied together as you need tremendous amounts of water to create “energy” and that “energy” is needed to transport the water.  As we move more and more towards “green solutions”, water will play an even more pivotal role in that type of production.

How does this affect Fredericksburg TX Real Estate?  Simple, land with existing water (or, like oil, “proven reserves”) is likely to appreciate at a more rapid clip than will land without this valuable resource.

If you have been searching for property to purchase, you (hopefully) have been fully informed of our water “situation” and the need to assure yourself that the property in question has adequate water for your intended use(s).  If you are selling a property you have (hopefully) been told of the value that “proven water” can add to your parcel.  If not, please call me to discuss this in more detail. (By the way, do you know who “owns” the water in all Texas creeks, streams, rivers and lakes? Hint: it’s not the adjacent land owner.)

The Hill Country Underground Water Conservation District has actively been studying and monitoring our ground water resources for some time.  Surrounding counties have their own districts that are (in most cases) not nearly as proactive as the HCUWCD.  What does this mean to you?  It means that very smart, very forward-thinking people (and politicians) are watching and waiting for the need to REGULATE what we so often take for granted. It’s coming folks.

There are ways to plan for the inevitable regulation of this resource and this is a tremendously complicated issue that can’t be covered completely in a simple blog posting.  Be forewarned, however, that “water rights” (they are separate and distinct from mineral rights) will play an increasingly noticeable and important role in land valuation and buyer preferences into the foreseeable future.  Remember, Experience Matters