The Petroleum Industry Revived; Largest Oil Deposit Discovered in Texas
What is claimed to be the largest deposit of untapped oil was discovered in the US, according to the US Geological Survey (USGS). Found in the Midland Basin part of the famous Permian Basin in Texas, not only does it have recoverable natural oil, it could also provide massive amounts of natural gas. The discovery could not only generate roughly 20 billion barrels of oil but also provide an average of 1.6 billion barrels of natural gas liquids.
Though this untapped reserve may be recoverable, it will take very intricate measures to extract it. According to the USGS, a process called slant drilling and hydraulic fracturing are the probable means of recovery, both of which are advanced.
The Permian Basin, home to the Wolfcamp Shale, includes a variety of geological formations in West Texas and Southern New Mexico. In 2013, another petroleum reserve has also been discovered in this area.
Business Insider reported that this is historic news as continuous discoveries of enormous petroleum deposits indicates that there may be more yet to be uncovered. With the petroleum industry expected to boom once again, this might as well be very good news for America as they could become exporters to their neighbouring countries.
Discovery of the largest oil deposit in America may be their most economic game-changer. This year, the world has seen an incredible decline in the prices of petrol, and economists have warned that there are possibilities for it to soar once again. Having an impressively large recoverable field of natural gas and recoverable oil in Texas will lessen oil exports and thus further reduce the price of petrol for consumers.
However, since it has only been discovered, there will be time consumed to extract and process these oil. It might take years before the actual benefits may be realized. Federal authorities hope that this would bring about the resurgence of the oil and gas industry, providing the jobs lost when the industry once tumbled.