A new U.S. Department of Energy study dispels the common belief that little crude oil remains to be found in the U.S.
The study, researched by independent industry analysts, concluded the estimate of recoverable oil in the U.S. could be four to eight times higher than the currently accepted reserves figures.
U.S. INDUSTRY NOT IN TWILIGHT?
James Randolph, assistant secretary for fossil energy, said, "Many think that the U.S. oil industry is in its twilight years as far as finding and developing new reserves. This study indicates otherwise.
"By developing and utilizing advanced technologies, we can indeed increase our domestic reserve base, which in the long run will mean less reliance on unstable sources of foreign oil."
Currently, Energy Information Administration estimates the U.S. has 24.7 billion bbl of proved reserves.
But the report said the remaining recoverable crude oil resource base could range 99-204 billion bbl at prices of $27/bbl or less.
It predicted new discoveries in the Lower 48 states and Alaska could yield 43-90 billion bbl and contends the expansion of existing fields, drilling to deeper formations, and infill drilling could add another 31-89 billion bbl.
The study said at a $20/bbl price for oil, existing technology could recover 99 billion bbl.
But assuming a $27/bbl price and the addition of advanced technologies, it said recoverable oil could total 204 billion bbl. Both estimates include the 24.7 billion bbl currently identified as proved reserves.
STUDY DETAILS
The University of Texas' Bureau of Economic Geology and DOE's National Institute for Petroleum Energy Research, Bartlesville, Okla., coordinated the work of the 17 member panel.
The panel's analysis relied on the Delphi method for its calculations, the same model DOE used in 1988 for its upward revision of producible domestic gas reserves.
DOE said, "As with the natural gas study, the newly introduced information related to the oil resources could also create a greater public awareness of the amount of oil still producible from domestic reservoirs."
The study can be obtained from DOE's Bartlesville, Okla., project office.
DOE CONTRACTS
To help U.S. industry improve recovery rates, DOE last week signed the first five of 14 contracts it has negotiated with private firms to demonstrate ways to raise output from fluvial dominated deltaic reservoirs (OGJ, Apr. 27, p. 28).
That type of field exists in more than 15 states and contains more than 28 billion bbl of remaining oil in place.
The 14 projects are expected to add 21 million bbl to the nation's reserves, but if their methods are replicated in other fields, it could add 6.3 billion bbl to U.S. reserves.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
