Oil deposit in West Texas could be largest ever discovered in the U.S.
- 8 years ago
MIDLAND, TEXAS — The largest oil deposit ever found in the U.S. was recently discovered in Texas’ Permian Basin.
The discovery was announced by the U.S. Geological Survey, which says the area reportedly contains an estimated 20 billion barrels of oil and 1.6 billion barrels of natural gas liquids.
With a barrel of oil priced at $45, according to West Texas Intermediate rates, the entire deposit could be worth around $900 billion.
The shale deposits were found in the basin’s Midland portion, in a section called Wolfcamp which already has more than 3,000 active oil wells.
Tapping into the deposits requires directional drilling, where the drill is turned horizontally at depth when it reaches the shale layer. Small fractures are created in the rock before fracking liquid is pumped in a high pressure to untap oil and gas deposits from the shale.
The discovery was announced by the U.S. Geological Survey, which says the area reportedly contains an estimated 20 billion barrels of oil and 1.6 billion barrels of natural gas liquids.
With a barrel of oil priced at $45, according to West Texas Intermediate rates, the entire deposit could be worth around $900 billion.
The shale deposits were found in the basin’s Midland portion, in a section called Wolfcamp which already has more than 3,000 active oil wells.
Tapping into the deposits requires directional drilling, where the drill is turned horizontally at depth when it reaches the shale layer. Small fractures are created in the rock before fracking liquid is pumped in a high pressure to untap oil and gas deposits from the shale.