Before you begin this "jaw-dropping" update on the Permian, let's go back to this observation made by an expert on oil and gas and also an expert on global warming:
From the linked articles below:
“It’s no surprise that Texas has massive oil fields, but these new findings from USGS are jaw-dropping. Fracking and horizontal drilling have turned the United States into a global energy superpower, and the untapped potential in the Wolfcamp means we won’t be surrendering that status any time soon,” group spokesman Steve Everly said. “For the few remaining advocates of ‘Peak Oil,’ this certainly isn’t their lucky day.”Previous discovery record: 2013 -- North Dakota's Bakken-Three Forks.
From Bloomberg: a $900 billion oil treasure lies beneath West Texas desert.
From Breitbart: West Texas deposit 'largest" in history.
From MarketWatch: the US is increasingly looking at this Texas region for oil.
Data points that should get your attention:
- new USGS report
- 3x larger than North Dakota's Bakken
- single largest US unconventional crude accumulation ever assessed
- at current prices: almost $1 trillion
- the formation is as much as a mile thick -- read that again: this single formation is as much as a mile thick -- the Bakken is measure in tens of feet
- the best news -- this report concerns a deposit in a state, that:
- is oil friendly
- sits next to Mexico
- has low tax rate
- is able to get pipelines laid
- has huge export capability along a coast relatively near a newly enlarged Panama Canal
- location of the surveyed area: from north of Lubbock to remote regions southwest of San Angelo
- an estimated and previously unaccounted for 20 billion bbls crude oil; 16 trillion cubic feet of natural gas; and 1.6 billion bbls of natural gas
- at 75 billion bbls, second only to Saudi Arabia's Ghawar field
- Texas play: the Wolfcamp (I track the Wolfcamp here)
- this play has already produced billions of bbls of oil
- recent story on land rush in the Permian -- two days ago
- despite all the press on the Permian and despite producing since the 1920s, in fact, "its multiple layers of oil-soaked shale remained largely untapped until the last several years"
- COP, November 10, 2016: increased its own estimate for the size of its Wolfcamp holdings to almost 2 billion bbls from 1 billion bbls last year -- almost doubled its estimate
- COP: two recent wells -- pumping an average of 2,000 bopd
- Bone Spring is a slice of the Wolfcamp, another Permian layer
- a 3-billion-bbl Alpine High discovery that Apache Corp announced two months ago
- oh, by the way, the Bone Spring could also be huge for EOG
- the blog was reporting stories about this incredible play years ago
- everything above concerned crude oil
- in addition, the Wolfcamp holds 16 trillion cubic feet of natural gas
- in addition, the Wolfcamp holds 1.6 billion bbls of gas liquids
- west Texas' Permian basin holds nearly as many active oil and gas drilling rigs as the rest of the US combined -- and includes offshore rigs in the Gulf of Mexico
- the Permian is currently the only region where crude oil production is expected to increased for the third straight month