Texas Operations $MDMP
Geologists say a new survey shows an oilfield in west Texas dwarfs others found so far in the United States, according to the US Geological Survey.
The Midland Basin of the Wolfcamp Shale area in the Permian Basin is now estimated to have 20 billion barrels of oil and 1.6 billion barrels of natural gas, according to a new assessment by the USGS.
That makes it three times larger than the assessment of the oil in the mammoth Bakken formation in North Dakota.
The estimate would make the oilfield, which encompasses the cities of Lubbock and Midland — 118 miles apart — the largest “continuous oil” discovery in the United States, according to the USGS.
The term “continuous oil” refers to unconventional formations like shale, in which the oil exists throughout the formation and not in discrete pools. The USGS estimates how much oil is considered to be undiscovered but technically recoverable.
“Even in areas that have produced billions of barrels of oil, there is still the potential to find billions more,” “Changes in technology and industry practices can have significant effects on what resources are technically recoverable.
Oil has been produced in the Wolfcamp area since the 1980s by traditional vertical wells — but now companies are using horizontal drilling and hydraulic fracturing to tap the continuous oil reserve. More than 3,000 horizontal wells were operating in 2016 producing 4.3 million barrels per day. Today there are thousands more horizontal wells being drilled in the Permian Basin, not just in the Midland Basin area. The activity has expanded into the Delaware Basin area of far West Texas and eastern New Mexico. Permian oil production in total has reached a high of 5.4 million Barrels per day with more to come.
Oil columns in the Permian can reach 4000 ft. This means there are multiple benches for horizontal drilling and EUR’s of millions of barrels per location! MDM believes this area is a drillers best bet for billions of dollars in returns.
