Andrew Topf
With over two decades of journalistic experience working in newspapers, trade publications and as a mining reporter, Andrew Topf is a seasoned writer specializing in…
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By Andrew Topf - May 10, 2025, 4:00 PM CDT
An assessment by the US Geological Survey reveals potential undiscovered oil and gas in two formations under much of the US Gulf Coast from Texas to Florida.
The survey detailed that here are technically recoverable resources of 35.8 trillion cubic feet of gas and 28 million barrels of oil. That’s enough gas to power the entire United States for 14 months at the current rate of consumption, the USGS said in a note.
“USGS energy assessments typically focus on undiscovered resources – areas where science tells us there may be a resource that industry hasn’t discovered yet. In this case, our assessment found substantial resources of gas,” said Sarah Ryker, acting director of the USGS.
Since exploration began in the area, the Hosston and Travis Peak Formations have produced 8 trillion cubic feet of natural gas and 126 million barrels of oil. The formation represents a small segment of the onshore Gulf Coast’s Cretaceous-aged rocks.
Much of the undiscovered, technically recoverable natural gas estimated to be present in the Hosston – Travis Peak formations is what the industry calls “tight gas”: natural gas trapped in low permeability rock, far below the surface. “Producing tight gas here would involve drilling and fracking, down more than 8,000–10,000 feet from the surface,” said Christopher Schenk, USGS geologist, in a May 7 news release.
The agency says that while the study area stretches from the Mexican border along the Gulf of America to most of Florida, resources are concentrated in one sliver extending from southeastern Texas across central Louisiana through the Mississippi Delta and into state waters of Louisiana, in the Hosston-Travis Peak Shelf Continuous Gas Assessment Unit (see map below).
According to the Energy Information Administration (EIA), the United States currently produces nearly all of the natural gas that it uses. Natural gas is extracted from onshore and offshore natural gas and oil wells, and from coalbeds.
In 2023, US dry natural gas production was the highest on record, at 37.8 trillion cubic feet, which is 103.6 billion cubic feet per day (Bcf/d), a 4.3% increase from 2022’s 99.3 Bcf/d. Texas saw the largest increase with a 7.4% rise in production. New Mexico was the second largest at +15.3%. The top five producing states are Texas, Pennsylvania, Louisiana, West Virginia and Oklahoma.
Worldometer estimates the US holds about 368.7 million cubic feet of gas reserves, placing it as the world’s largest holder of the energy source.
It has proven reserves equivalent to 11.9 times its annual consumption levels, meaning the US has about 12 years of gas left at current levels and excluding unproven reserves, such as this week’s announcement of technically recoverable resources of 35.8 trillion cubic feet of gas and 28 million barrels of oil in the Hosston and Travis Peak Formations.
Most of the production increases since 2005 are the result of horizontal drilling and hydraulic fracturing techniques, notably in shale, sandstone, carbonate, and other tight geologic formations, states the EIA.
Several oil and gas companies are actively operating in the Hosston and Travis Peak formations, with some notable examples mentioned in recent news. Surge Energy Inc. recently announced its first-quarter financial and operating results. Similarly, Tourmaline Oil Corp has been highlighted for its record production and recent acquisitions, including its $10.8 billion acquisition of Stena Energy Group. Additionally, Saturn Oil & Gas Inc. has also reported strong results with record production and adjusted funds flow.
Several major energy companies operate onshore in the US Gulf Coast, including Enbridge, Kinder Morgan, Citgo, and Woodside Energy, among others. These companies are involved in various aspects of the energy industry, including pipelines, terminals, and refineries. Additionally, companies like INEOS Energy are acquiring oil and gas assets in the region.
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Andrew Topf
With over two decades of journalistic experience working in newspapers, trade publications and as a mining reporter, Andrew Topf is a seasoned writer specializing in…
