Texas is now the site of the country’s largest oil deposit ever discovered, it was announced by the United States Geological Survey recently.
The site at Wolfcamp in West Texas alone is estimated to contain 20 billion barrels of oil, with the wider basin likely to contain 75 billion barrels making it second only to Saudi Arabia in reserves. Based on the current oil price the deposit is worth an estimated US$900 billion.
The Midland formation which the deposit is part of has been the site of renewed activity from oil companies as they have begun using deep shale drilling perfected in other states.
“Changes in technology and industry practices can have significant effects on what resources are technically recoverable, and that’s why we continue to perform resource assessments throughout the United States and the world.” said Walter Guidroz, program coordinator for the USGS Energy Resources Program.
The site is located close to the new Petra Nova coal-fired power plant which could boost oil extraction when it comes online. The plant will use carbon captured from power generation to increase oil production from wells as they mature.