The U.S. Geological Survey (USGS) has discovered large new oil and gas deposits in the Mowry Composite Total Petroleum System, covering parts of Wyoming, Colorado, and Utah. The Department of the Interior (DOI) announced the findings, estimating 473 million barrels of oil and 27 trillion cubic feet (tcf) of natural gas. This is much higher than the 90 million barrels of oil and 7.3 tcf of gas produced there since exploration began in the 1950s.
DOI Secretary Doug Burgum said the new assessment highlights the importance of American energy resources for energy independence and economic growth in the West. He added that the evaluation provides crucial data to support responsible resource management and help communities, industry, and policymakers create jobs and increase domestic energy production.
In a related update, the Bureau of Ocean Energy Management (BOEM) reported that the Gulf of Mexico holds an additional 1.3 billion barrels of oil equivalent (boe), raising total reserves to 7.04 billion boe. This reflects a 22.6% increase following analysis of over 140 oil and gas fields and 37,000 reservoirs across 1,336 fields.
BOEM estimates the Gulf contains 29.59 billion barrels of oil and 54.84 trillion cubic feet of gas in technically recoverable resources in undiscovered fields.
Burgum emphasized that America sits on a vast energy “treasure trove,” and praised efforts under the Trump administration to unlock these resources.
However, many U.S. energy executives disagree with the administration’s optimistic “drill, baby, drill” approach. In a March survey of 200 oil and gas companies by the Federal Reserve Bank of Dallas, several executives criticized the administration’s energy policies as chaotic and damaging to markets.
One anonymous executive called “drill, baby, drill” a myth and said tariff policies were unpredictable and unclear in purpose. Another noted that expectations of $50-per-barrel oil forced their company to reduce capital spending for 2025 and 2026. They warned that such low prices would lead to fewer rigs, job losses, and declining U.S. oil production, similar to trends seen during the COVID-19 pandemic.
The U.S. shale industry now faces a stronger, more united OPEC. While shale producers once cut costs to compete with OPEC’s price war, rising expenses and lower oil prices have squeezed profits in recent years. The economic fallout from tariffs has further pressured U.S. shale companies.
Reuters reports that OPEC+ is speeding up production increases partly to reclaim market share lost during past cuts, adding to challenges for U.S. producers.
In summary, while U.S. resource assessments show abundant energy potential, industry insiders warn that current policies and market conditions may hinder growth, especially for shale producers.
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