Since I've started doing the Closing Oil Report (every weekday at 5:20, brought to you by Permian Basin Metallurgical Laboratories) I've started paying a lot more attention to the oil in West Texas. We all know there is a lot of oil here, a lot a lot of oil. I wanted to know more, so I did some research and this is what I've found
The Permian Basin is roughly 300 miles long and 250 miles wide. Here is a handy map from Wikipedia:
The United States produced more Oil in 2012 than in any other year in history, largely because of the increase in Oil Production here in the Permian Basin. We are already on course to beat that record in 2013.
The most conservative estimates say that there are at least 2.7 Billion barrels of oil that are economically recoverable with current technology. There is over 100 Billion barrels of oil more that isn't economically feasible to recover with today's technology, but drilling technology is rapidly improving.
The Basin had a record high 415 Rigs working in 2012. To put that in perspective just 5 years earlier in 2007 there were only 191 Rigs. As you hear me say on the Closing Oil Report there are 392 Rigs running today, but it changes week to week.
The Permian Basin Produces two-thirds of all the oil in Texas and anywhere from %15 to %21 of all Oil in the United States. The only area that beats the Permian Basin in Oil Production is the entire state of Alaska. If you add what is produced in Permian Basin New Mexico, which is usually grouped separately from Permian Basin Texas it would be almost tied with Alaska. Texas as a state however far outproduces Alaska in total Oil Production.
To make a long, detailed story short. Permian Basin has a whole lot of oil.