New discovery just announced.

https://www.sciencedaily.com/releases/2018/12/181206135643.htm

Very cool. It's nearly impossible to imagine those kinds of amounts in the ground. Here's to $.99/gallon!

Indeed. I was trying to find out the square miles of that area but was unable to do so. It’s definitely bigger than some east coast states.

I would love to see .99 per gallon gas but the cost to drill and refine etc. and the actual sales price would depend upon the highest bidders price.

https://www.forbes.com/sites/timwor...w-resource-economics-works/#563c3d90118f

Nov 18, 2016, 02:43am
The Midland Basin Wolfcamp Shale Is Not Worth $900 Billion - That's Not How Resource Economics Works
Tim Worstall

There is much excitement at the USGS announcement of their discovery of vast shale oil resources in the Wolfcamp area of the Midland Basin in Texas. At 20 billion barrels it's said to be the largest continuous field ever discovered. It most certainly has a value and we are all of us richer as a result of the discovery of this most useful material. However, this isn't worth $900 billion, that's just not how resource economics works.

But that is the insistence at The Guardian:
"A huge deposit of untapped oil, possibly the largest ever discovered in the US, has been identified by the US Geological Survey (USGS) in west Texas.
The USGS estimated that 20bn barrels of oil was contained within layers of shale in the Permian Basin, a vast geological formation that stretches across western Texas and an area of New Mexico. The discovery is three times larger than the Bakken oilfields of North Dakota and is worth around $900bn.
The enormous deposit, in the Midland Basin Wolfcamp shale area that includes the cities of Lubbock and Midland in Texas, is the largest continuous oilfield ever discovered by the USGS. The area also includes 16tn cubic feet of natural gas and 1.6bn barrel of natural gas liquids."

Everything except that valuation there is just fine. But that valuation is horribly wrong. Because what they've done is just look at the market price of oil, multiply by the volume and say that's the worth of it, the value.

What % is this compared to what we currently refine? I mean why would it drop the price of gasoline?

281 trillion cubic feet of natural gas !? I hope they don't waste it with flaring, like they do in the Permian Basin

https://www.greencarcongress.com/2018/12/20181105-rystad.html

That's just a little bit less than what Taco Bell generated last year...

You heard it here. Buy sand stocks.

What they didn't mention is the huge cost of drilling and fracking horizontal wells. I wouldn’t expect oil to become cheaper but as refineries are reconfigured for more light oil it will provide jobs and opportunities like you won’t believe. A good example is North Dakota where almost all the production revolves around the Bakken and Three Forks. There are 65 drilling rigs running 24/7 and they are just able to grow production a bit. The rest of the new wells just replace the production from the huge decline rate. Drill, baby, drill.

That's the funniest post I've read in a long time.

The cheaper gas gets the more we want it to go even cheaper.
It seems no gas is a good deal to the US customers
I'm thrilled at $2 a gallon

Time to build more GTL plants in the Gulf.

Just what we don't need. More fossil fuel to pump out of the ground. I guess its better than finding more coal.

It isn’t like they want to waste it. It can’t be used because there is no way to move it to where we need it. We wouldn’t need near as much oil if we could utilize all the natural gas that is out there.