A new discovery challenges the narrative of declining shale oil and gas in the US. The USGS assesses 28.3 trillion cubic feet of gas and 1.6 billion barrels of oil in the Woodford and Barnett shales in the Permian Basin. Production from these shales has been minimal, making them an exploration target.

The Permian Basin has long been a vital source of US energy. However, challenges exist in recovering oil and gas from the Woodford and Barnett shales. The reserves are deeper and hotter, requiring advanced techniques like hydraulic fracturing and horizontal drilling. Identifying productive areas in the Permian Basin remains a focus.

The US is selling off millions of barrels of Venezuelan oil amid a saturated global oil market. With prices around $60 per barrel, oil companies face a surplus and declining demand projections. Shale producers in Texas are already facing economic slowdowns as rigs decrease, awaiting price recoveries.

Shale wells decline rapidly, requiring constant drilling to maintain output. The IEA reports that global oil and gas fields are depleting faster than expected, leading to a costly battle to sustain production. Shale companies must invest heavily to counteract significant depletion rates in their wells.

The oil and gas industry is struggling to maintain output as fields decline faster than anticipated. Companies are spending a large portion of their budget just to prevent production declines. The situation requires the industry to work harder to keep pace with diminishing reserves, according to the IEA.

Read more at Yahoo Finance: USGS Uncovers Massive New Oil and Gas Potential in the Permian Basin