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For companies in the oil business, oil land leasing may have significant financial benefits over purchasing land for oil production. First of all, oil land leasing is less capital-intensive than purchasing oil land, so if an oil business has constraints on its capital, it can grow more rapidly by leasing oil land than it could by purchasing the property outright. However, oil land leasing may provide more flexibility to an oil business which expects to grow or move in the relatively short term, because a lessee is not usually obliged to renew a lease at the end of its term.
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