The United States Geological Survey has substantially increased its estimate of recoverable oil reserves in the Bakken and Three Forks Formations.

The USGS, which is part of the Interior Department, nearly doubled its 2008 estimate to a new total of 7.4 billion barrels.

In recently announcing the results of the new governmental assessment, Interior Secretary Sally Jewell said: “These world-class formations contain even more energy resource potential than previously understood, which is important information as we continue to reduce our nation’s dependence on foreign sources of oil.”

Based on the oil-exploration activity of private companies and their test-drilling results, we at the Hegg Companies Inc. were not surprised that USGS significantly increased its estimate. In fact, we suspect the estimate is still too low, especially when improvements in mining technology are taken into account.

Even so, the increased estimate is great news for companies and investors doing business in the Bakken and Three Forks region. The assessment will help ensure that the development of housing units, office space and business services will be a continuing need in the economically booming area.

You can read details of the USGS’s new assessment in the agency announcement at:  http://www.usgs.gov/blogs/features/usgs_top_story/usgs-releases-new-oil-and-gas-assessment-for-bakken-and-three-forks-formations/?from=title.