New Oil Discovery In Texas and New Mexico Basin

New Oil Discovery In Texas and New Mexico Basin

drillingThe US Geological Survey was conducted in Texas and New Mexico’s Delaware Basin. The findings are astonishing, an estimated 46.3 billion barrels of oil and 281 trillion cubic feet of natural gas was uncovered at the Wolfcamp Shale and overlying Bone Spring Formation in Delaware Basin portion in Texas and New Mexico’s Permian Basin province. An additional 20 billion barrels of natural gas liquids, the survey is aimed at assessing recoverable resources specifically in this case oil.

This amazing discovery strengthening the flows for the United States. In the 1980’s the Permian and other similar Basin were not considered viable resources for productions. While technology has advanced rapidly since we are able to accurately assess large recovery resources.

A separate assessment was performed in 2016 at the Woflcamp Formation in the Midland Basin, at that time it was the largest continuous oil and gas assessments ever released.

The Delaware Basin assessment of the Wolfcamp Shale and Bone Spring Formation is at least twice larger than the Midland Basin. The West Texas and Southern New Mexico area is one of the most productive regions for oil and gas in the entire United States.

The result of the survey by the USGS “The results we’ve released today demonstrate the impact that improved technologies such as hydraulic fracturing and directional drilling have had on increasing the estimates of undiscovered, technically recoverable continuous resources” per Walter Guidroz, Program Coordinator of the USGS Energy Resources Program.

It is a great discovery that comes right on time for the U.S. to continue to be one of the key players to dominate the markets alongside of Saudi Arabia and Russia.

The Basins have much more to be uncovered, while technologies are still progressing, we should in the next few years be able to uncover even more wealth. The question remains what will be the cost to produce these resources?