US Oil Reserves Double World
The GAO came out with a report this past week that stated the following regarding shale oil reserves in the Green River Basin area of Utah, Colorado, and Wyoming...
toward satisfying the nation’s future oil demands. The Green River Formation—an assemblage of over 1,000 feet of sedimentary rocks that lie beneath parts of Colorado, Utah, and Wyoming—contains the world’s largest deposits of oil shale. USGS estimates that the Green River Formation contains about 3 trillion barrels of oil, and about half of this may be recoverable, depending on available technology and economic conditions. The Rand Corporation, a nonprofit research organization, estimates that 30 to 60 percent of the oil shale in the Green River Formation can be recovered. At the midpoint of this estimate, almost half of the 3 trillion barrels of oil would be recoverable. This is an amount about equal to the entire world’s proven oil reserves. The thickest and richest oil shale within the Green River Formation exists in the Piceance Basin of northwest Colorado and the Uintah Basin of northeast Utah.
In North Dakota they are experiencing a boom of employment due to the shale oil deposits being tapped. Tapping those deposits and reserves is a technology in progress and like all new technologies its potential for extracting more of the oil will only grow over time.
It makes you wonder if the current spikes in gas and oil will be neutralized and a downward trend of pressure on pricing from the vast volume of oil available in the Green River area will effect the markets? Time will tell.