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Permic oil reserves can be twice as high as we thought

The U.S. Geological Survey has revised the technically recoverable reserves in Wolfcamp Basin, in Permian Shale Play, to 46.3 billion…

The U.S. Geological Survey has revised the technically recoverable reserves in Wolfcamp Basin, in Permian Shale Play, to 46.3 billion barrels of crude oil and 281 billion tons of natural gas. It is up from 20 billion barrels of crude oil and 16 billion cu ft gas in recoverable reserves by the end of 2016.

It is worth noting, but the new estimate also includes the benign formation that forms part of the Delaware Basin in Permian. This is the first time this formation is part of the USGS oil and gas reserves assessment.

Recoverable reserves are estimated to be based not only on exploration results and geology but also on the price level that makes the oil and gas commercially viable for extraction. USGS conducted its audit earlier this year, so it must have reflected the improvement in oil prices, especially the West Texas Intermediate, which has now largely disappeared, causing concern for sustainability of production growth, which has been stable throughout the year. [1

9659002] The national sum struck 11.7 million bpd last month, a full-time high and also the highest in the world, and Permian was the main driver behind this growth. It is the skier game that produces the most oil and boasts the fastest production volume: in November, Permian gave 3.63 million bpd of crude oil and the Energy Information Agency expects this to rise further to 3.695 million bpd this month.

So, Permian is already a star, but now it will shine more light. The USGS numbers mean that it is the largest single oil and gas reservoir in the United States and one of the largest at global level. Related: The United States becomes a net oil exporter for the first time in 75 years

Albuquerque Journal quoted the head of the state’s oil and gas association saying “Even for someone who understands resources and potential in the Permian Basin , I can not be surprised by the enormous enormity of what the USGS has reported. Ryan Flynn added, “The permissive resources shared by New Mexico and Texas make this area one of the world’s most important places in oil production.”

Even If this is true, rush it to the permanent, called Permania, has led to some problems, namely price rebates, because there are not enough wires to get the product to refineries and export markets. However, these problems are being addressed and Permania finds that will only intensify unless prices drop below US $ 50 per barrel for WTI.

By Irina Slave for Oilprice.com

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