Big Oil Boom In US

[Dr. Shane]

Bakken Oil Formation Holds Billions of Barrels in N.D.

The Bakken Formation in North Dakota could boost America’s oil reserves by an incredible 10 times, according to a report Wednesday.

The Bakken Oil Formation, which covers North Dakota and portions of Montana and South Dakota, is believed to have 175 to 500 billion barrels of recoverable oil. The 200,000 square mile reserve that was initially discovered in 1951.

In 2007, EOG Resources of Texas drilled a single well in Parshal N.D. that is expected to have yielded 700,000 barrels of oil. Marathon Oil is investing $1.5 billion and drilling 300 new wells.

Bakken Oil Formation Holds Billions of Barrels in N.D.

In the next 30 days, the U.S. Geological Survey (USGS) will release a new report giving an accurate assessment of the Bakken Oil Formation.

The United States imported about 14 million barrels of oil per day in 2007, which meant U.S. consumers have spent $340 billion dollars in exported oil.

As of Wednesday, the crude oil price is at $104.83 per barrel.

North Dakota may be bigger oil player than Alaska

Leigh Price, a scientist with the U.S. Geological Survey, published a study in 1999 that estimates the Bakken shales formation, which underlies much of several western and northwestern counties, may hold up to 400 billion barrels of oil.

By comparison, the Arctic refuge oil reserve is estimated at 16 billion barrels.

[melvin mccarty]

Remember when "Big Oil" got their first major boost in price by claiming that worldwide reserves were only good for ten more years? That was more than 30 years ago I think.

mel

[Dr. Shane]

If the oil boom in the Dakotas and Montana gets to be as big as Alaska it will go a long way to reducing the US trade deficit and increasing the value of the US dollar.

[Neil D]

If the oil boom in the Dakotas and Montana gets to be as big as Alaska it will go a long way to reducing the US trade deficit and increasing the value of the US dollar.

Yeah, but the key phrase is "recoverable oil"...I am told the oil is in the shale and has to be processed to before it comes to the consumer. It appears to be a "expense factor", meaning they want the price to be up so as to recover thier costs and still make questionable profits.

[Dr. Shane]

As long as oil stays above $50/barrel the Bakken oil will be profitable. Of course the bottom could fall out of the oil market but no one is predicting it will fall that low. India and China are still increasing their demand for oil which is part of the reason we see the price rising so much.

[Dr. Shane]

On a similar note, Venezuelan oil is not the sweet crude that is so profitable. If oil prices fall below $50/barrel Venezuela goes back to being a third-world country. It is estimated that Venezuela has more oil reserves than the entire middle east but it has to be refined more to make it usable which means the price of oil has to be higher in order for it to be profitable. President Hugo Chavez has told OPEC they must not let the price of oil fall below $50/barrel.

[phkrause]

Quiet oil boom

Data: Energy Information Administration. Chart: Axios Visuals American oil production — already higher than any other country — is quietly setting new records and helping to push down gas prices. Why it matters: Oil wells are booming again this year after the pandemic crushed demand and reduced production by more than 20%, Axios' Ben Geman reports. What's happening: U.S. oil production is over 13.2 million barrels per day, topping records set in 2019. The average gas price in the U.S. — $3.15 per gallon — has plunged since hitting records in the summer of 2022. How it happened: Forces pushing U.S. output up include ... High oil prices in recent years provided an incentive to drill more. Producers at prolific U.S. shale basins are improving efficiency and drilling horizontal wells up to three miles long. Saudi Arabia and allied producers have held back some production as OPEC looks to prop up prices, leaving a market opening. Investment and permitting decisions that date back several years — "even as far back as the Bush and Obama administrations for offshore development," the American Petroleum Institute's Megan Bloomgren said. 🔎 Between the lines: The record drilling — and how to talk about it — has squeezed President Biden between young climate activists and persistent GOP attacks on his energy record. Biden has remained relatively silent about U.S. oil strength. But he does like promoting lower gas prices, which this supply increase helps enable. Some moderate Democrats want Biden to openly take credit for record production. Josh Freed, who runs the climate and energy program at the center-left think tank Third Way, told Axios: "Gas prices have been high — and the Biden administration has done a huge amount to lower them, including upping drilling in the U.S." The intrigue: Biden's GOP and industry critics say the records come despite White House policies they call a drag on U.S. companies. Biden's critics want less regulation and stronger support for drilling on federal lands. Much of the oil and gas boom has unfolded on private or state lands, including the Texas side of the prolific Permian Basin. 🛢️ What's next: Production is expected to grow next year, but at a slower pace, according to estimates from the federal Energy Information Administration that are frequently revised. The agency's latest outlook sees U.S. crude output averaging roughly 13.2 million barrels per day next year, roughly the same as current levels and up around 2% from this year's average.