Unlocking America’s Energy Treasure: A Bounty of Oil and Gas Reserves, a New Era of Abundance Awaits

In a significant development, Oilprice reports that the US has announced a major oil and gas discovery, touted as one of the biggest finds in recent years. According to the US Department of the Interior, the US Geological Survey (USGS) has identified large-scale oil and gas deposits in the Mowry Composite Total Petroleum System, spanning the states of Wyoming, Colorado, and Utah.

A new report from the USGS estimates that the area holds approximately 473 million barrels of oil and 27 trillion cubic feet (tcf) of natural gas. This marks a substantial increase from the Mowry Composite area’s previous production, which stood at only about 90 million barrels of oil and 7.3 tcf of gas since exploration began in the 1950s.

This assessment is part of an effort to bolster US energy independence and boost economic development in the Western regions. Secretary of the Interior, Doug Burgum, commented, “This scientific assessment advances our understanding of domestic energy potential and supports job creation and long-term economic growth.”

In addition to the Mowry area, a separate analysis by the Bureau of Ocean Energy Management (BOEM) in 2021 also highlighted the vast potential in the Gulf of Mexico. The region is estimated to hold an additional 1.3 billion barrels of oil equivalent, bringing the total discovered resources to approximately 7.04 billion barrels, an increase of nearly 23% from previous assessments.

Combined, BOEM estimates that the Gulf of Mexico may contain up to 29.59 billion barrels of oil and 54.84 tcf of recoverable natural gas with current technology. These figures are based on the evaluation of over 140 oil and gas fields and the analysis of more than 37,000 reservoirs.

Since taking office, the Trump administration has advocated for a “drill, baby, drill” approach, a plan for continuous growth and expansion to increase the country’s output, which President Donald Trump referred to as “liquid gold.”

Currently, crude oil is produced in 32 US states, as well as in offshore areas, making the US the world’s largest oil producer. The top oil-producing states in the US account for 72% of the country’s total output: Texas (42.5%), New Mexico (13.3%), North Dakota (8.9%), Colorado (3.7%), and Alaska (3.7%).

However, experts caution that despite the significant potential, actual production depends on various factors such as extraction costs, global oil prices, and domestic energy policies.

There are also concerns that US shale oil production – a key driver of growth in the past decade – may be starting to decline due to resource depletion. The US Energy Information Administration (EIA) had previously projected that shale oil production could peak by 2023.

Nonetheless, this latest discovery in the Western US underscores the vast domestic energy potential of the country and its crucial role in ensuring global energy security in the decades to come.