The EIA estimates technically recoverable U.S. shale oil reserves are over 24 billion barrels or enough to fuel our needs for 7 years. What I find interesting is that some industry proponents like Harold Hamm of Continental Resources think that the Bakken alone holds 24 billion barrels of oil equivalent. If that’s the case, expect future estimates of oil resource potential to increase dramatically. The EIA and USGS are notorious for underestimating potential reserves, but at least they are acknowledging the oil boom.
“The report, the first ever commissioned by the US Energy Department to quantify the amount of oil in shale structures, offers staggering figures: considered nearly impossible to tap until a few years ago, shale oil may now account for over 20% of the onshore oil resources in the contiguous United States.”
“Shale oil is making up an ever-greater portion of the domestic crude coming to market.”
“Liquids-rich shale plays, coupled with benchmark oil prices near multi-year highs around $100 per barrel, have prompted a drilling renaissance, luring not only the largest domestic oil companies like ExxonMobil but also foreign giants like China’s CNOOC and Norway’s Statoil to the long-neglected US oil patch.”
Read the full news release at upstreamonline.com