Pioneer Natural Resources put all its eggs in the Wolfcamp formation basket and now the federal government has reaffirmed that decision.
The U.S. Geological Survey released new projections for the multi-layer formation, saying there could be as much as 20 billion barrels of oil trapped below the West Texas dirt, Bloomberg reported.
Even with depressed crude oil prices, that’s $900 billion worth of oil. The Wolfcamp, which is a portion of the Permian Basin, is described as a layered cake with stacked formations, each with their own oil.
For Irving-based Pioneer, the Wolfcamp oil wells continue to surpass their engineer’s expectations. The company renewed its focus on that region, pulling out of the Eagle Ford Shale and other less lucrative plays.
Pioneer CEO Scott Sheffield, who will retire at the end of the year, has made an even bolder claim that there could be as much as 75 billion barrels of oil in the larger Permian Basin, of which the Wolfcamp is a part. That would make it second only to the Ghawar field in Saudi Arabia.
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