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New Oil Reserve Could Hold 2B Barrels of Oil

Tuesday, September 20, 2016

There are plenty of stories about oil fields in the news, but most of them concern well-known fields. Houston-based Apache Corporation, however, recently announced its discovery of a significant oil and gas resource play in West Texas.

The new play is being called Alpine High, and it may turn out to be a notable discovery. Apache believes that the Alpine High area could contain an equivalent of 2 billion barrels of oil in the new site by the Davis Mountains, says The Wall Street Journal.

Apache spent more than two years conducting geologic and geophysical work, drilling and acquiring acreage in the Alpine High area, and the company now has more than 300,000 contiguous acres in the play and has already drilled 19 wells. Current estimates of the net value for each well ranges from $4 million to $20 million.

Most of the Alpine High play is within Reeves County, and drilling sites are in remote and difficult locations, which is why other companies have not already moved on this location.

The Alpine High play will further strengthen the role that Texas plays in the global energy industry. According to the U.S. Energy Information Administration, Texas produces more than three million barrels of oil every day, and leads the country in oil production and reserves. The oil and natural gas industry has long been important to the state’s economy, and is responsible for generating nearly $14 billion in royalties and taxes during the last fiscal year alone. The industry also employs thousands of workers in highly-paid jobs.

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