“What happens is one or more of the following: 1) technology is found that converts hard-to-produce resources into proven reserves, 2) oil prices increase to allow more expensive types of oil to be produced, and/or 3) companies are able to purchase additional leases and explore for new basins of oil. An example of the first case where technology enables oil resources to become proven reserves is hydraulic fracturing and horizontal drilling used to produce shale oil resources, most notably in North Dakota. North Dakota now ranks third among the states in oil production.[iii] Its proven reserves have increased 25-fold in 13 years, and are likely to grow much larger.”
Or as in our case ya drill a little deeper then the Wolfberry and we find the Canyon Sands. We’ve been drilling Wolfberry wells here for many years, then we decided to go down to 9000 ft and see whats there, we hit the Canyon Sands at about 8500 ft and these wells are coming in at close to 400 bpd and holding a around 60 bpd after a year. This was on our old Wolfcamp stuff that was pretty much played out in this area. Seismic did not show this, so I guess what I’m trying to say is, you don’t really know what you have until ya start puching holes.
The Russians abandoned the old fossil fuel phony theory years ago while the ‘peak oil’ propagandists kept peddling the same old line. Peak oil is nothing more than the precursor to global warming and carbon tax junk science war on carbon. What they will come up with next remains to be seen. Back to the Russians. Their theory is that crude is a natural occurring substance found in the molten center of the earth and works its way out to the ‘relative surface’ of the earth through fissures in the mantel. That is why the the Russians have been drilling down around the 10,000 foot level for a long time. Anyone ought to be able to figure out you do not find many dead dinosaurs down at 10,000 feet.
I’m reading where West Texas will be the next Bakken. Wolfberry, wolfcamp, Sprayberry all part of the Permian Basin.