Discovered: 17 Bakkens Stacked On Top of One Another
Is This the Next Big American Oil Field… Again?
By Brian Hicks
Thursday, March 14th, 2013
At around 6 o’clock on the morning of May 28, 1923, an oil well named after the patron saint of the impossible blew.
The well sprayed oil over the top of the derrick and covered a 250-yard area around the site…
On that morning, the Permian oil boom in Texas was born.
The name of the well was Santa Rita No. 1.
According to official state records in Texas, between 1917 and 1919, more than 5,000 drilling permits were issued for the Permian Basin. However, no exploration occurred… until August 23, 1921, when — just four hours before its permit was set to expire — the Santa Rita No. 1 was spudded.
Drilling continued for almost two years at the drill site before they struck the gusher.
For the next 50 years, the legendary Permian Basin dominated the world.
It has pumped out 35 billion barrels since Santa Rita No. 1 started spewing.
The field peaked in production between 1973 and 1974, as predicted by Shell geologist M. King Hubbert.
At its height, the Permian was pumping out over 1.7 million barrels per day.
When the Permian peaked, it marked the end of American oil domination and ushered in OPEC. And for the next 40 years, OPEC would have a stranglehold on the world’s energy economy.
But that was that was four decades ago.
A lot of things have changed — and quite dramatically…
Thanks to the revolution in hydraulic fracturing, the Permian is expected to regain its stature in the global oil market. It is set to become the king.
Oil and gas companies are rushing into West Texas like army ants. And it’s easy to see why.
“That would be the equivalent of 10 Eagle Ford shales stacked on top of each other. It’s 17 Bakkens placed on top of one another.”
That’s how a new American shale play is being described. That’s how big it is.
The industry-respected, Houston-based Hart Energy Magazine says: “There’s just oil all over the place,” and estimates the new field could produce more than 1.65 million barrels of oil per day within seven years.
At that daily production, this single oilfield would produce nearly four times more oil than OPEC member Ecuador. It would represent 66% of all of Mexico’s oil production (at its current rate)!
It’s a modern-day black gold rush. And it’s the hottest play in America — hotter than California’s Monterey… hotter than Texas’ Eagle Ford… and even hotter than North Dakota’s booming Bakken.