West Texas Shale Oil
November 20th, 2016Via: Bloomberg:
In a troubled oil world, the Permian Basin is the gift that keeps on giving.
One portion of the giant field, known as the Wolfcamp formation, was found to hold 20 billion barrels of oil trapped in four layers of shale beneath the desert in West Texas, the U.S. Geological Survey said in a report on Tuesday. That’s almost three times larger than North Dakota’s Bakken play and the single largest U.S. unconventional crude accumulation ever assessed. At current prices, that oil is worth almost $900 billion.
The estimate lends credence to Pioneer Natural Resources Co. Chief Executive Officer Scott Sheffield’s assertion that the Permian’s shale endowment could hold as much as 75 billion barrels, making it second only to Saudi Arabia’s Ghawar field. Pioneer has been increasing its production targets all year as drilling in the Wolfcamp produced bigger gushers than the Irving, Texas-based company’s engineers and geologists forecast.
“The fact that this is the largest assessment of continuous oil we have ever done just goes to show that, even in areas that have produced billions of barrels of oil, there is still the potential to find billions more,” Walter Guidroz, coordinator for the geological survey’s energy resources program, said in the statement.
They knew about this a long time ago. I used to refer to this document when everybody was screaming about Peak Oil.
Comprehensive Inventory of U.S. OCS Oil and Natural Gas Resources
Energy Policy Act of 2005 – Section 357
Report to Congress
The amount of actually recoverable oil available to the U.S. exploiters is more than five times the ‘official’ 21 billion barrels. “The total endowment of technically recoverable oil and gas on the [U.S. Outer Continental Shelf] is comprised of known resources—i.e., cumulative production, and estimates of remaining proved and unproved reserves and reserves appreciation—plus estimates of undiscovered resources. The estimate of the total hydrocarbon endowment … is 115.4 billion barrels of oil (Bbo) and 633.6 trillion cubic feet of gas,”
U.S. Department of the Interior
Minerals Management Service
February 2006
(PDF Document)
https://www.boem.gov/uploadedFiles/BOEM/Oil_and_Gas_Energy_Program/Resource_Evaluation/Resource_Assessment/2006-FinalInventoryReportDeliveredToCongress.pdf