Gas seems expensive because we were spoiled. We were paying an
average of $1.84 in April 2020 and the price of gas had been down for years before that.
I inherited oil royalties on 4 adjacent sections of property in OK in 2005. A lot of oil was produced at 9,000 feet but 50 years ago they were all vertical and produced 1/3 of what's possible today. We could not lease these properties for 16 years. My brother gave up and sold his shares for a pittance. Then in 2022 a bidding and drilling war started. Previously these new horizontal wells were limited to 10,000 feet deep. But our newest well was successfully drilled at 14,500.
Oil company geologists surveying our land say off the record the estimated US reserves is a fraction of our true oil reserves. On our land there are pools of oil at 9,000, 14,000, and 19,000 feet. As you go deeper the pools get 2-3x in size. Core drilling stops where the first oil is found at 9,000 feet. So only the shallowest small pools are counted as "proven" reserves. But seismic and gamma ray testing accurately show the "hidden" reserves.
The highest estimate of US oil reserves I've seen is
1.442 trillion barrels of oil. Interesting over the years those numbers were replaced by "
American is running out of oil". But now that's being replaced by "
the US has the largest reserves in the world". I say follow the money and it makes sense. If alt energy looks to be higher profit we are running out.
The oil reserves are causing a new
OK land rush due to an undeveloped super basin extending up into Kansas. Plus due to the higher pressure the natural gas reserves are unbelievable.