[Dallas News] The U.S. Geological Survey released a new assessment Thursday that shows portions of the Permian Basin could hold even more promise.Everything is bigger in Texas.
With the potential to double the nation's onshore oil and gas resources, the agency estimates more than 46 billion barrels of oil and some 280 trillion cubic feet of gas are within two formations on the southwestern side of the basin. That's the largest continuous oil and gas resource potential ever assessed.
While agency geologists caution that more study would be needed to determine the profitability of going after the resources, industry groups and top officials within the Trump administration are encouraged and say the assessment underscores the activity that's already happening in the basin.
"Before this assessment came down, I was bullish on oil and gas production in the United States," Interior Secretary Ryan Zinke said in a statement. "Now, I know for a fact that American energy dominance is within our grasp as a nation."The announcement comes as OPEC countries voted Friday to cut oil production beginning next year as a way to force crude oil prices higher despite political pressure from President Donald Trump. The group of oil-producing nations was looking to rein in supply as prices had fallen about 25 percent because major producers, including the U.S., have been pumping at high rates.
Good call, OPEC guys. Higher prices means even more West Texas oil.