US Geological Surveys revised the technically recoverable reserves of the Wolfcamp Basin in the Permian shale game for 46.3 billion barrels of crude oil and 281 trillion cu of natural gas. This is due to 20 billion barrels of crude oil and 16 trillion cubic meters of gas in recoverable reserves in late 2016.
However, the new estimate also includes the Kemik Yay formation, which forms part of the Delaware Basin in Permian. This was the first time USGS oil and gas reserves were included in the evaluation.
Recoverable reserves are calculated not only on search results and geology but also on the price level at which the oil and gas are commercially available. The USGS revised earlier this year, so it had to reflect the improvement in oil prices, particularly the largely disappeared West Texas Agent, which has been worrying about the sustainability of its steady production growth throughout the year.
The national total was 11.7 million bpd last month, the highest and the highest in the world, and is the biggest driving force behind this growth. It is the one that produces the most oil and also has the fastest rate of production growth. In November, Permian achieved 3.63 million bpd of crude oil, and Energy Information Management expects it to rise to 3.96 million bpd this month.
So, the Permian is already a star, but now it will shine brighter. USGS numbers are the largest oil and gas reservoir in the US and one of the largest on a global scale. Related: US became the first oil exporter in 75 years
The Albuquerque magazine quoted the president of the state's Oil and Gas Association as follows: Ryan Flynn added, aç The Permian resources shared by New Mexico and Texas have made this region one of the most important places in the world in terms of oil production. R
While this is true, Permania has led to some problems in price rushes, such as adequate pipelines to get the product to this rush, refineries and export markets for the so-called Permian. However, these issues are already being addressed, and Permania seems to concentrate only without having a barrel for WTI if prices fall below $ 50.
By Irina Slav for Oilprice.com
Read More from Oilprice.com