Start the conversation
A small U.S. oil and gas company called Caelus Energy LLC just struck black gold in Alaska…
That's why for oil, Alaska just became the next North Dakota.
According to an Oct. 5 press release, the private company's new oil discovery could yield up to 10 billion barrels of light oil, which is more easily recoverable from the ground than other types of oil. To put that amount into perspective:
- Based on the current WTI oil price of nearly $50 per barrel, Caelus' production efforts could produce upwards of $10 million worth of oil per day.
- The highly touted West Texas oil discovery on Sept. 8 is thought to contain three billion barrels of oil – 7 billion less than the Alaskan discovery.
- The North Dakota Bakken Region and East Texas Oil Field (the largest in the United States) contain a combined4 billion barrels of oil. That's nearly worth the size of Zimbabwe's annual GDP.
The newly discovered 126-square-mile field is located in Smith Bay, an area just 30 miles north of the Arctic Circle.
In a public statement, Caelus CEO Jim Musselman said the discovery was so significant, that it could "play a meaningful role" in sustaining the Alaskan oil business over the next three or four decades. Although Caelus has only done preliminary testing, the discovery could increase Alaska's oil reserves by a staggering 80%, according to Forbes.
Don't Miss: Are you doing everything you can to grow your retirement "nest egg"? You can start today with our top 5 money-making investment reports – they're absolutely free…
What's truly remarkable, however, is how Caelus' discovery looks compared to the massive North Dakota oil discovery between 2006 and 2012.
The comparison makes Alaska the new oil capital of the United States…