Wolfcamp Riches | Russell T. Rudy Energy LLC
There is little doubt that the Permian Basin has become the epicenter of the domestic upstream oil and gas industry. A recent article in “World Oil” reinforces this perception quoting a report by the U. S. Geological Survey (USGS) which estimates that the Wolfcamp formation alone contains 20 billion barrels (Bbbl) in four strata beneath the arid landscape of West Texas and Southeast New Mexico. To put that in perspective, that is three times larger than North Dakota’s Bakken shale and the largest unconventional oil field in the U. S. At current prices this reserve is valued at $900 billion.
Scott Sheffield, CEO of Pioneer Natural Resources, maintains that the Permian’s shale reserves could total as much as 75 Bbbl, making it second to only Saudi Arabia’s Ghawar field. Pioneer is finding that its Wolfcamp wells continue to exceed its expectations.
Walter Guidroz, with the USGS, observed “The fact that this is the largest assessment of continuous oil we have ever done just goes to show that even in areas that have produced billions of barrels of oil, there is still the potential to find billions more.”
The Permian Basin has been producing since the 1920’s but its shale potential had gone untapped until recent advances in horizontal drilling and hydraulic fracking made it economically viable. The Wolfcamp formation, which in some cases can be up to a mile thick, is a primary target of shale operators.
ConocoPhillips recently increased its estimate of reserves in the Wolfcamp to 1.8 Bbbl. Concho Resources, another major player in the area reports that recent wells completed in the formation are producing at the rate of 2,000 barrels of oil per day. In addition to its oil reserves, the Wolfcamp also contains an estimated 16 trillion cubic feet of natural gas and 1.6 Bbbl of natural gas liquids according to the USGS.
To read the article in its entirety, please go to http://www.worldoil.com/news/2016/11/15/permian-oil-riches-rise-as-us-sees-reserves-worth-900-billion .
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