Those supporters of the American Energy Renaissance are going to be happy after a massive field of oil reserves has been found in Texas.
It has been over the last ten years or so that there has been a massive increase in the output of oil thanks to an increase in exploration and drilling in the Midwest and Texas. There has been a lot of growth economically in large states like North Dakota and Texas as a result.
Now, in West Texas, a new field has been discovered that is bigger than any other reserve of oil here in the United States.
The Star-Telegram has more details:
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 West Texas. That’s almost three times larger than North Dakota’s Bakken play and the single largest U.S. unconventional crude accumulation ever assessed, according to the U.S. Geological Survey. At current prices, that oil is worth almost $900 billion.
The estimate lends credence to the assertion from Pioneer Natural Resources Chief Executive Officer Scott Sheffield that the Permian’s shale could hold as much as 75 billion barrels, making it second only to Saudi Arabia’s Ghawar field. Irving-based Pioneer has been increasing its production targets all year as drilling in the Wolfcamp produced bigger gushers than the 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.