The New Oil
It has been said by some verysavvy folks that “water is the new oil”. If businessmen like T. Boone Pickens are to be believed (he’s beenbuying up hundreds of thousands of acre feet of water rights in west Texas foryears now) the increasing scarcity of water in our state, combined with therapid population growth will ultimately combine to make water as precious asoil is today.
As San Antonio drains the Edwardsaquifer dry and DFW pipes water in from Oklahoma and Arkansas pressure willincrease of municipalities to secure the future of their water resources lestthey 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 areinexorably 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 “greensolutions”, water will play an even more pivotal role in that type ofproduction.
How does this affectFredericksburg TX Real Estate? Simple, land with existing water (or, like oil, “proven reserves”) islikely to appreciate at a more rapid clip than will land without this valuableresource.
If you have been searching forproperty to purchase, you (hopefully) have been fully informed of our water“situation” and the need to assure yourself that the property in question hasadequate water for your intended use(s). If you are selling a property you have (hopefully) been told of thevalue that “proven water” can add to your parcel. If not, please call me to discuss this in more detail. (Bythe way, do you know who “owns” the water in all Texas creeks, streams, riversand lakes? Hint: it’s not the adjacent land owner.)
The Hill Country Underground Water ConservationDistrict has actively been studying and monitoring our ground waterresources 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 forgranted. It’s coming folks.
There are ways to plan for theinevitable regulation of this resource and this is a tremendously complicatedissue that can’t be covered completely in a simple blog posting. Be forewarned, however, that “waterrights” (they are separate and distinct from mineral rights) will play anincreasingly noticeable and important role in land valuation and buyerpreferences into the foreseeable future. Remember, ExperienceMaters
