PEAK OIL: Small Texas company announces massive oil discovery in Alaska.

“This discovery could be really exciting for the State of Alaska,” said Caelus chief executive Jim Musselman. “It has the size and scale to play a meaningful role in sustaining the Alaskan oil business over the next three or four decades.”

While Caelus plans to initiate a more advanced appraisal program which should confirm overall reservoir continuity, the company believes that with adjoining acreage included, the Smith Bay field as a whole could contain up to 10 billion barrels of oil.

A billion barrels here and a billion barrels there, and pretty soon you’re talking real energy.