The Palo Duro Basin seemingly has all the elements necessary for hydrocarbon generation and accumulation: reservoirs, traps, source rocks, and sufficient thermal maturity. Porous facies in pre-Pennsylvanian, Pennsylvanian, and Permian strata are potential hydrocarbon reservoirs.

The San Andres Formation on the Northern and Northwestern Shelves of the Midland Basin is a progradational stratigraphic unit consisting predominantly of carbonate facies. Lithofacies include dolomite, laminated anhydrite and dolomite, massive bedded anhydrite, limestone, salt, and red beds.

Red beds, evaporites, and carbonates of the upper Clear Fork and Glorieta Formations (Permian) of the Texas Panhandle form an association of facies deposited in nearshore and supratidal environments along an arid coastline.

San Andres oil constitutes more than 80 percent of the total production from the Northern Shelf of the Midland Basin, Texas.

Regional cross sections of Middle and Upper Permian rocks in the Texas Panhandle illustrate the lithology, depositional systems, and structure of these salt-bearing strata.

The Salado-Tansill and Alibates Formations are the youngest evaporite and carbonate facies within a thick Permian sequence of evaporites, carbonates, and red beds in the Texas Panhandle.

The Texas Panhandle traditionally has been an important source of mineral resources, especially petroleum, and resources will continue to contribute heavily to the economy of the area. The seven cross sections of this report synthesize the subsurface geology of the region.

Pennsylvanian clastic and carbonate strata were deposited in a variety of environments within the Palo Duro Basin. Maximum accumulation (totaling 750 m or 2,400 ft) occurred along a northwest-southeast axis.

Samples collected from 20 geographically widespread wells in the sparsely drilled Palo Duro Basin were analyzed for total organic carbon content (TOC). Highest values of TOC, up to 6.9 percent, occur in Upper Permian San Andres dolomite in the southern part of the basin.

Lower Permian (Wolfcampian) strata of the Palo Duro Basin consist of thick, terrigenous clastic and carbonate facies that were deposited in (1) fan-delta, (2) high-constructive delta, (3) carbonate shelf and shelf-margin, and (4) slope and basinal systems.