The United States is the world's largest oil and gas producer. Its oil production has also slowed down due to a variety of reasons, including natural depletion. [emphasis, links added]
However, the U.S. Geological Survey just published a study that pointed out that there are nearly 30 billion barrels of undeveloped oil – under federal land, no less.
Oil and gas drilling was a controversial topic during Biden’s administration. The government absolutely doesn't like it and has put in serious effort to curb drilling permitted by law.
Once Donald Trump became president, the table turned around and drilling federal land became an ideal guide for federal energy policy, and the president prioritized affordable energy and higher exports.
Now, the U.S. Geological Survey has put weight behind the idea of U.S. energy dominance Undiscovered oil reserves are estimated to be 29.4 billion barrels nationwide, and the leader is Alaska, with 14.46 billion barrels of unexplored oil under federal land.
The next New Mexico state has 8.92 billion barrels of undiscovered oil, followed by Nevada with 1.4 billion barrels. Undeveloped gas reserves on federal land are estimated to exceed 39.155 billion cubic feet.
Now, the only problem is that these unexplored resources will be utilized.
Recently, the number of rigs for U.S. oil patches has been steadily declining recently, reflecting weakness in international prices. Of course, this has changed now after the Israeli attack on Iran on June 13, but it is urgent to reverse the path for the time being.
The industry is working safely, especially since cheap drilling sites are already running out, or may not, if USGS's assessment of unexplored resources is correct.
Over the years, U.S. oil production growth has been the most driving force behind the Permian Basin spanning Texas and New Mexico. The Permian fell one-handedly in several other shale dramas, and the daily business in the traditional field was basically flat.
However, the Permian is not inexhaustible, and more importantly, it is not cheap everywhere. As a result, the cost of the Permian is rising, as some parts of the show meet their geological limitations while others have not yet drilled out and are not expected to be as prolific as the industry's current top-tier area.
This has attracted the attention of commentators, although some believe that the country's most prolific shale performances may create another boom.
However, with the USGS' new assessment of undiscovered reserves, this boom has become less important to the current government's plan of domination.
If there were 14.46 billion barrels of crude oil under Alaska alone, the shortage of new oil would not soon become a problem for the world's top producers.
“The U.S. energy advantages are more important than ever, and the report highlights the critical role science has in enabling our energy future.” Doug Burgum, the interior director of the room, said in the USGS Research.
“Thanks to USGS’s rigorous and independent assessment, we have the ability to manage the vast U.S. public land responsibly while supporting energy security and economic opportunities.”
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