Photo credit: BP.
Posted on 06/22/2014 10:52:21 AM PDT by ckilmer
June 22, 2014 |
Photo credit: BP.
BP (NYSE: BP ) has provided an intriguing update to its global oil reserves estimate in the company's latest yearly review of energy statistics. BP raised its reserve estimate by 1.1% to 1,687.9 billion barrels, which is enough oil to last the world 53.3 years at the current production rates. However, there's likely a lot more oil left in the tank beyond what BP sees today.
America's energy boom surges
A good portion of the growth in global oil reserves in BP's report comes from the United States. According to BP, the U.S. has 44.2 billion barrels of oil reserves, which is 26% higher than it previously thought. It's also quite a bit more optimistic than the U.S. Energy Information Administration, which recently increased its estimate to 33.4 billion barrels of reserves, or 15% more than previously thought.
The overall cause for that surge in oil reserves is that America's shale oil plays -- the Bakken, Eagle Ford and Permian Basin -- are now being unlocked through horizontal drilling technology.
Despite the big boost in reserves over the past year, there appears to be much more oil potential in each shale play, with the Permian Basin really standing out.
Source: Pioneer Natural Resources Investor Presentation.
As that slide points out, Pioneer Natural Resources (NYSE: PXD ) now estimates the Spraberry/Wolfcamp shale formations in the Permian Basin contain 75 billion barrels of recoverable oil and gas. That number is actually a major upward revision from last year when Pioneer estimated the two formations held 50 billion barrels of recoverable oil and gas.
These Permian Basin plays now make the Eagle Ford and Bakken shales look small in comparison. Yet the recoverable reserve estimates of both of those shale plays also continue to grow. In the four years since EOG Resources (NYSE: EOG ) began developing the Eagle Ford shale it has drastically revised its reserve estimates. The company now believes it will recover 3.2 billion barrels of oil equivalent on its land position, which is up from less than 1 billion barrels in 2010. New technologies and techniques, including closer spacing of wells, are providing a big boost to future reserve estimates.
Source: EOG Resources Investor Presentation (link opens a PDF).
Next up for America
As those three plays do all the current heavy lifting to grow reserves, new oil plays continue to emerge. The two most promising appear to be the Tuscaloosa Marine shale in the Gulf Coast region and several shale plays in the Rockies. EOG Resources this year unveiled four new horizontal oil discoveries in the Rockies, proving yet again that America's energy boom is just getting started.
EOG Resources estimates that it will ultimately recover about 400 million barrels of oil equivalent as it develops its acreage in the Rockies. However, keeping in mind the company's nearly fourfold boost to its estimated recovery figure in the Eagle Ford shale, it's likely there is a lot more upside in the Rockies as EOG Resources and others develop the oil rich shales in the region.
While the world as BP sees it might just hold 53.3 years' worth of oil, that certainly does not mean we'll run out of oil anytime soon. New shale plays continue to be discovered in the U.S., which should fuel substantial gains in reserves over the next decade. There's plenty of oil still left in the world's tank thanks to the development of America's shale resources.
Libs want you to believe 3 things about oil.
It’s FINITE (not renewable).
It’s from dinosaurs (not renewable).
It makes evil oil companies rich.
Truth be damned with lib-tards.
its called abiotic oil ,a never ending replenishing supply the Russians came out with the theory years ago, but was never widely accepted in us.
So basically about 50 years.
I would still call it a serious use before 1964.
I would say it was a serious requirement for our economy before WW2.
The experts said it was going to be warm and sunny here today with calm winds. It’s windier than hell already. Hmmmm. Bad news for the guys fighting the fires.
Or anywhere else.
T'Pol: "Were they aware at this time [2004] that Earth's supply of fossil fuel was nearing depletion?"
Archer: "They had been for 30 years... But it wasn't until 2061 that they finally did."
Peak oil again? I thought this died 10 years ago.
I’ll be long gone.
LOL! A positive spin on the problem! There's no problem. Besides, all those billions of dead humans along with plants and animals will cook over time and replenish the oil. That's the ticket. (I like your humor!)
Note to self. Fill up the cars the night of Sunday, September 25, 2067.
WHAT IF THEY’RE WRONG?
SUPPOSE THERE’S ONLY 53.2 YEARS LEFT?
TAXES MUST BE RAISED AND FREEDOM CURTAILED!!!
IT IS THE WORLD’S ONLY HOPE!
By that time we will be the Jetons’, so regular gas won’t get it.
Gulf oil were drilling wells all over OK and TX from the 80’s well into
the 90’s. Many people working those fields told me outright that the wells
were being found and capped for no apparent reason
............
its always economics. Oil prices collapsed in the late 80’s and 90’s. The price was too low and the technology wasn’t good enough.
Now the price is great the technology is much much better.
You can believe those same wells are being turned on now.
Stupid headline. It’s possible that at some time it will become too expensive to get oil from the ground, so that we no longer choose to get it from the ground. But we won’t “run out” of it.
We'll need something to power our houseboats.
Well played sir
All the fields will be underwater....
so, invest in submarine drilling equipment...
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