USGS Unveils Massive Undiscovered Oil and Gas Resources in Texas’ Permian Basin

In a groundbreaking assessment that underscores the enduring potential of America’s energy heartland, the U.S. Geological Survey (USGS) has revealed significant undiscovered oil and gas resources in the Woodford and Barnett shales within the Permian Basin. This latest evaluation, released just days ago, estimates technically recoverable reserves that could bolster U.S. energy security and fuel economic growth in Texas and beyond. As host of the Energy News Beat podcast, I’m excited to dive into what this means for the industry—and who stands to gain.

The USGS Assessment: A Deeper Look at Untapped Potential

The USGS’s geology-based assessment focuses on the Woodford and Barnett shales, organic-rich formations located up to 20,000 feet below the surface in the Permian Basin Province, spanning West Texas and southeastern New Mexico. These shales, deeper than many other Permian resources, were once considered challenging to access. However, advancements in hydraulic fracturing and horizontal drilling have transformed them into viable targets for production.

Key highlights from the report include:

Oil Resources: An estimated mean of 1.6 billion barrels of undiscovered, technically recoverable oil—enough to supply the United States for approximately 10 weeks at current consumption rates.

Natural Gas Resources: A staggering 28.3 trillion cubic feet of gas, which could meet national demand for about 10 months.

Natural Gas Liquids: An additional 813 million barrels, adding further value to these resources.

Production from these shales began in the late 1990s, yielding about 26 million barrels of oil to date—equivalent to just one day’s U.S. consumption. The USGS emphasizes that these estimates represent “undiscovered” resources, meaning they haven’t yet been proven through drilling but are deemed recoverable with current technology.

This assessment builds on the Permian’s legacy as one of the world’s most prolific oil-producing regions, where operators are increasingly targeting deeper “benches” like the Barnett and Woodford for new inventory.

As USGS Director Ned Mamula stated, “The U.S. economy and our way of life depend on energy, and USGS oil and gas assessments point to resources that industry hasn’t discovered yet. In this case, we have assessed that  there are significant undiscovered resources in the Woodford and Barnett shales in the Permian Basin.”

Geologist Christopher Schenk added, “The shift to horizontal drilling with fracking has revolutionized oil production, and we’ve changed with it.”

Basins and Formations Involved

The Permian Basin, often dubbed the “crown jewel” of U.S. shale, is the focal point here. Spanning roughly 75,000 square miles across West Texas and New Mexico, it’s already the nation’s top oil-producing area. The Woodford and Barnett shales are key formations within this province:

Woodford Shale: A Devonian-age formation known for its organic-rich content, it’s been a target in other basins like Oklahoma’s Anadarko but is now gaining traction in the Permian’s deeper sections. Production is concentrated along the margins of the Delaware and Midland sub-basins and on structural highs like the Central Basin Platform.

Barnett Shale: Famous for kickstarting the shale boom in North Texas’ Fort Worth Basin, its Permian extension is deeper and more oil-prone in areas like Andrews and Ector counties. Recent drilling has yielded promising results, with operators refining techniques to achieve economic viability.

These formations add layers—literally—to the Permian’s stacked pay zones, extending the basin’s lifespan amid maturing Wolfcamp and Spraberry plays.

Companies Poised to Capitalize

This assessment has sparked renewed interest in deeper Permian targets, with several operators already exploring or developing the Woodford and Barnett. Here’s a look at key players well-positioned to benefit, based on their acreage, recent activity, and strategic focus: