USGS Estimates 20 Billion Barrels of Oil in Texas’ Wolfcamp Shale Formation

[Steve Case]

Good News:

USGS Estimates 20 Billion Barrels of Oil in Texas’ Wolfcamp Shale Formation

This is the largest estimate of continuous oil that USGS has ever assessed in the United States.
The Wolfcamp shale in the Midland Basin portion of Texas’ Permian Basin province contains an estimated mean of 20 billion barrels of oil, 16 trillion cubic feet of associated natural gas, and 1.6 billion barrels of natural gas liquids, according to an assessment by the U.S. Geological Survey. This estimate is for continuous (unconventional) oil, and consists of undiscovered, technically recoverable resources.

The estimate of continuous oil in the Midland Basin Wolfcamp shale assessment is nearly three times larger than that of the 2013 USGS Bakken-Three Forks resource assessment, making this the largest estimated continuous oil accumulation that USGS has assessed in the United States to date.

 

[longview]

Good News:

USGS Estimates 20 Billion Barrels of Oil in Texas’ Wolfcamp Shale Formation

That is interesting, the question is weather it is economically recoverable.
Fracking costs a lot of money, if the price stays low, they cannot justify the expense of fracking.
adding volume to the supply keeps the price low.
It is kind of a Catch 22.

 

[Steve Case]

That is interesting, the question is weather it is economically recoverable.
Fracking costs a lot of money, if the price stays low, they cannot justify the expense of fracking.
adding volume to the supply keeps the price low.
It is kind of a Catch 22.

In other words, price in the future will be dictated by production costs, not scarcity.

 

[longview]

In other words, price in the future will be dictated by production costs, not scarcity.

I think that has been true for a while, There is likely more oil under the Gulf of Mexico than under the Middle East,
it is just not easy of cheap to get, with today's technology.
Where this all has a real problem, is that oil now has an absolute ceiling in the mid $90 a barrel range.
Above that it will be more profitable for the refineries to make their own feedstock, from water, CO2, and electricity.
Some companies have old fields that produce their own supply for less, but I think the
anti-trust laws separated the profit centers.

 

[Steve Case]

I think that has been true for a while,

Probably

There is likely more oil under the Gulf of Mexico than under the Middle East,

Probably

it is just not easy of cheap to get, with today's technology.

And if they don't follow the rules, dangerous.

Where this all has a real problem, is that oil now has an absolute ceiling in the mid $90 a barrel range.

Good news for consumers - No?

Above that it will be more profitable for the refineries to make their own feedstock, from water, CO2, and electricity.

You gots a linky-poo fer dat? [On Edit I found this]
https://www.scientificamerican.com/article/turning-carbon-dioxide-back-into-fuel/
But it's from Scientific American, a decidedly leftist and dubious publication these days.

South Africa produces gasoline from coal
South Africa has a way to make oil from coal | Pittsburgh Post-Gazette

Some companies have old fields that produce their own supply for less, but I think the
anti-trust laws separated the profit centers.

Government meddling is always an issue

 

[longview]

And if they don't follow the rules, dangerous.

Yes, the rules are generally set by the laws of Physics, which seem to have a poor since of Humor.

Good news for consumers - No?

It should be, in the long run!

You gots a linky-poo fer dat? [On Edit I found this]

Yes the acknowledged players are the Naval research labs, and Audi in Germany
https://www.nrl.navy.mil/media/news-releases/2012/fueling-the-fleet-navy-looks-to-the-seas
Audi Just Invented Fuel Made From CO2 and Water

Government meddling is always an issue

Vertical monopolies, are generally not good for consumers or competition,
The anti-trust actions of the early 20th century were likely a good move.

 

[Jack Hays]

Energy
[h=1]Peak Oil Indefinitely Postponed[/h]Guest post by David Middleton The U.S. Geological Survey has made its largest discovery of recoverable crude ever under parts of West Texas, the federal agency announced Tuesday. A recent assessment found the “Wolfcamp shale” geologic formation in the Midland area holds an estimated 20 billion barrels of accessible oil along with 16 trillion cubic feet of…

 

[Mac77]

This means we do not need alternative energy for at least 100 more years

 

[Jack Hays]

Newsbytes
[h=1]Newsbytes: U.S. Geological Survey Discovers ‘Largest Oil & Gas Deposit Ever Discovered In America’[/h]The Never-Ending Shale Revolution That Keep On Giving On Tuesday, the USGS announced that a swath of West Texas known as the Wolfcamp shale contains 20 billion barrels of oil and 16 trillion cubic feet of natural gas. That is nearly three times more petroleum than the agency found in North Dakota’s Bakken shale in…