The U S Geological Survey (USGS) just published a revised assessment of oil and gas reserves in the Sprayberry formation in the Permian Basin in Texas. In the revision, USGS estimates the formation holds 4.2 billion barrels of recoverable oil and 3.1 trillion cubic feet of gas. This represents a 700% increase over its prior assessment in 2007. The researchers at USGS said that as more wells are drilled in this region, the more data they have with which to calculate assessments and the better their ability to map and understand these formations. This assessment is the largest ever released by USGS and represents the largest oil and gas reserve in the lower 48 states.
The Sprayberry formation is one of seven formations in the Permian Basin area of Texas. The Permian Basin is the largest petroleum-producing basin in the United States and has produced a cumulative 28.9 billion barrels of oil and 75 trillion cu ft. of gas. This news probably means more oil and gas wells will be drilled on existing leases, and that oil companies may be seeking new leases as well.