Wolfcamp 20 Billion BL Oil find shakes Tarsands


tay
#1
A vast field of shale rock in West Texas could yield 20 billion barrels of oil, making it the largest source of shale oil the U.S. Geological Survey has ever assessed, agency officials said.

The Wolfcamp Shale geologic formation in the Midland area also contains an estimated 16 trillion cubic feet of natural gas and 1.6 billion barrels of natural-gas liquids, the agency said in a release.

The discovery is nearly three times larger than the shale oil found in 2013 in the Bakken and Three Forks formations in the Dakotas and Montana, said Chris Schenk, a Denver-based research geologist for the agency.

The Wolfcamp Shale is part of the sweeping and energy-rich Permian Basin, which includes a series of basins and other geologic formations in West Texas and southern New Mexico. It’s one of the most productive oil and gas regions in the United States.

Ken Medlock, director of an energy-studies program at Rice University in Houston, said it seems “likely that we’re seeing the birth of a new Permian Basin.” The advent of horizontal drilling, hydraulic fracturing and other advancements will allow for the removal of shale oil at a volume that will make the basin “the dominant onshore platform for oil production,” he said.

Mr. Schenk said it’s been known for years that the region could yield new bountiful oil production, but it took the U.S. Geological Survey time to assess the Wolfcamp Shale and estimate the volume of that production.

“We think the potential is there for the future and it’s not going to be realized overnight,” he said.

The release issued by the Geological Survey on Tuesday hints at the resurgence the oil and gas industry likely will see in Texas in the coming years following a downturn during which energy prices tumbled and tens of thousands of jobs were lost.

Vast shale find in West Texas set to revive Permian Basin - The Globe and Mail
 
MHz
#2
If it starts raining a bit more try and plant some crops at the same time. That should take care of the energy needs for awhile. Is that in the form of gas or liquid oil??
Couldn't underground coal seams be heated up and the gases extracted and the 'ash' could be left in place underground.
Canada can forget about any pipelines going south so they better put a few in going west and east before the east is buying their gas from TexasCo
 
Cannuck
#3
What are "tar sands"?
 
tay
#4
Quote: Originally Posted by CannuckView Post

What are "tar sands"?

You may be too young to recall what the Athabasca area was called before the Oil companies marketing teams pushed to soften the name to Oil sands but the Tar Sands were so called because the ground is like tar from where the Oil is separated.....


In Dunn County, North Dakota, there are around 2,000 square miles where the cost to produce Bakken shale is $15 a barrel and falling, according to Lynn Helms, head of the state's Department of Mineral Resources.

"Two years ago, we thought prices hovering around $50 to $60 meant that non-OPEC production growth would end. But U.S. production came back stronger."

In a recent earnings call, Hess Corp said it has improved its cost performance in the Bakken, with well costs falling and initial production rates rising, though it did not give more details.

"Everybody is drilling wells faster and completing them better," said Mike Breard, an energy stock analyst at Hodges Capital Management in Dallas. "It's not just a Bakken phenomenon."

"The success in Dunn County has been fantastic," said Ron Ness, president of the North Dakota Petroleum Council.

Dunn County's cost is about the same as Iran's, and a little higher than Iraq's. Dunn County produces about 200,000 barrels of oil a day, about a fifth of daily production in the state.

It is North Dakota's sweet spot because it boasts the lowest costs in the state, yet improved technology and drilling techniques have boosted efficiency for the whole state and the entire U.S. oil industry.

The breakeven cost per barrel, on average, to produce Bakken shale at the wellhead has fallen to $29.44 in 2016 from $59.03 in 2014, according to consultancy Rystad Energy. It added that in terms of wellhead prices, Bakken is the most competitive of major U.S. shale plays.

Wood Mackenzie said technology advances should further reduce breakeven points.

Landlocked Bakken producers still need a substantially higher international price than their breakeven cost to make a profit, since they pay more to transport crude to market than producers in most other U.S. regions.

International oil prices of $45 a barrel are enough for some Bakken producers to profit, Ness said, and $55 would encourage production growth.

Leaner and meaner: U.S. shale greater threat to OPEC after oil price war | Reuters (external - login to view)


Last edited by tay; Nov 30th, 2016 at 04:20 AM..
 

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