With the protests over the Dakota Access Pipeline making front pages of newspapers across the country, the major oil fields have come back into the spotlight. Often talked about is the Bakken Field, which has gained its reputation for being the largest oil and shale field in the United States. That was until some recent geologic discoveries.
Up until now, the Bakken Field has carried the largest volumes of oil and natural gas in the ground anywhere in the United States. But recent geological surveys in West Texas suggest that the Permian Basin may contain three times as many petroleum resources as the Bakken Field. However, part of the reason that this area has sat relatively untouched is because of the difficulty in removing these resources. For decades, this area near Midland, Texas was a large producer of conventional oil, but much of what was recently surveyed is considered unconventional. Until the more widespread utilization of hydraulic fracturing equipment, much of these resources were locked away in shale and other rock formations that couldn’t be accessed. This new survey suggests that over 20 billion barrels of oil could be hiding out in the Permian Basin with an additional 16 trillion cubic feet of natural gas, so what does this mean for the United States long term?
Actually quite a bit. Energy independence has been a big area of focus for quite some time now, and while the major oil and natural gas fields across the nation are still able to produce a substantial amount of crude oil and refinable product, knowing that there is more room to keep oil and gas prices down by maintaining supply will help the economy over the next several decades. Additionally, further surveys of other large oil fields may produce similar results, providing information on untapped resources that we haven’t had the technology to access until recently.
Expect the Bakken Field to maintain its current prominence and production, but you can bet that in the next five years, drilling and fracking will thrive in West Texas. This means more jobs in the area and more need for supplies, such as frac tanks and drilling equipment, in order to expand production into this area. Previously on the blog, we talked about how OPEC recently made an agreement to cut back production and exports in oil. This will probably increase oil prices in the short term since you won’t see production ramp up in the Permian Basin for a little while. It will take time to start new drilling and extraction projects in the area. However, once the process starts, the United States will have more energy independence from the Middle East and Russia, and be able to have a greater control on oil and gas prices.
This even affects many people outside of the oil and gas industry. The effects of this find will even trickle down to the average monthly electricity bill for many citizens around the country as affordable natural gas is utilized to power cities.
As the oil and gas industries, as well as the fracking industry, expand, turn to Well Water Solutions for all your frac tank and water management needs. Contact us today for more information and pricing.