Wednesday, May 01, 2013

Black Gold Boom

There's more oil in the Dakotas and Montana than thought:
The federal government is doubling its estimate of how much oil might be discovered and harvested in the booming area of the Dakotas and Montana, a region that’s already helping to drive the United States’ dramatic shift into a role as the world’s leading oil producer.

“These world-class formations contain even more energy resource potential than previously understood, which is important information as we continue to reduce our nation’s dependence on foreign sources of oil,” Interior Secretary Sally Jewell said Tuesday in a conference call.

The surge comes primarily because of the Three Forks shale formation, which lies mostly in North Dakota and crosses into South Dakota and Montana. It was considered to have little potential for productive drilling the last time federal geologists launched an estimate of the area, four years ago. But advances in drilling techniques and growing activity by oil companies caused the U.S. Geological Survey to take a closer look.

The USGS now thinks the Three Forks formation contains 3.73 billion barrels of undiscovered and technically recoverable oil. Combined with a similar figure for the neighboring Bakken formation, it represents double the oil and nearly triple the natural gas that geologists thought the region held four years ago.
This could indeed be big, if the EPA doesn't manage to step in and screw it up first...

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