Two Extra Layers

By: Matt Reese / December 12, 2018

The United States Department of the Interior announced a revision last week about an increase in the potential production in the Wolfcamp Shale and Bone Spring Formation. The announcement stated, two underground layers in the Delaware Basin in the Permian shale play of West Texas and New Mexico, contain 46.3 billion barrels of oil, 281 trillion cubic feet of natural gas and 20 billion barrels of natural gas liquids.  This represents the largest pool of oil and gas reserves anywhere in the United States. The Permian is already the driving force in production hitting an all-time high in November of 11.7 million barrels per day (bpd) as it is the biggest producer and boasts the quickest rate of production at 3.63 million bpd. 

 A report issued by the United State Geological Survey in 2016 speculated that the Wolfcamp Shale had an estimated 20 billion barrels of oil, 16 trillion cubic feet of natural gas and 1.6 barrels of natural gas liquids were present in the basin.  It is important to note that the revised findings by the USGS now include the Bone Spring Formation for the first time. The reserves are “undiscovered but technically recoverable” which means that they have yet to be produced but with current technologies in drilling can be recovered.  Ryan Flynn, Executive Director of New Mexico Oil and Gas Association said, “Even for someone who understands the resources and potential of the Permian Basin, I can’t help but be surprised by the sheer enormity of what the USGS has reported,” Flynn said. “The Permian resources shared by New Mexico and Texas make this area one of the most important places in the world in terms of oil production.”

 

blog-2

Politicians from both sides of the isles seam to stress the need for an independence from foreign oil. It would seem from technological advancement and new studies we are one step closer to that realization. The potential increase in production from the Permian Shale deposit will undoubtedly change the future landscape of domestic production. 

 

 

https://oilprice.com/Energy/Crude-Oil/USGS-Doubles-Permian-Oil-Reserves-Estimate.html

https://www.usgs.gov/news/usgs-estimates-20-billion-barrels-oil-texas-wolfcamp-shale-formation

https://www.abqjournal.com/1254493/usgs-permian-oil-gas-reserves-largest-ever-found-in-u-s.html

https://www.eia.gov/petroleum/drilling/#tabs-summary-2

 


Categories: natural gas, drilling


Matt Reese

Written by

Matt Reese

With a combined 10 years of customer service and sales experience, I am a detailed and efficient person who provides integrity and exemplary customer service to every business relationship. Consulting, cultivating and caring are qualities that my customers appreciate most.


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us