A "Saudi Arabia" Worth of Oil under Dakotas, Saskatchewan, and Manitoba

The Bakken oil formation is possibly the largest conventional oil discovery in Canada since 1957. If this oil formation plays out toward the higher end of size and recoverability then it will change the geopolitics of oil and the economies of the United States and Canada. If a lot of the oil proves difficult to recover now, new technologies could still drastically improve the percent recoverable. The motivation to pull out another 100 billion barrels would be $9 trillion at todays prices.

Estimates are anywhere from a conservative 25 billion barrels of oil in place, to a high estimate by the United States Geological Survey of 400 billion barrels of oil in the Bakken formation. Not only is the oil plentiful, but it's high quality too, 41 degree light sweet crude. The Bakken formation is a formation of black shale, siltstone, and sandstone. The formation lies beneath the Mississippian formation, Saskatchewan's current source of light sweet crude. The Bakken formation is situated beneath southeastern Saskatchewan, southwestern Manitoba, and North Dakota.

In 2007, EOG Resources out of Houston, Texas reported that a single well it had drilled into an oil-rich layer of shale below Parshall, North Dakota is anticipated to produce 700,000 barrels of oil.The resources of the Bakken Formation are defined by the United States Geological Survey (USGS) as unconventional “continuous-type” oil resources. This means the hydrocarbons within the Bakken have not accumulated into discrete reservoirs of limited areal extent. With new horizontal drilling and completion technology taken into account, the technically recoverable resource base for the entire Bakken Formation is potentially much larger.

Full story from Next Big Future here