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Wednesday, March 6, 2013

U.S. Oil and Gas Production Reaches Historic High


The Energy Information Administration (EIA) reported on Tuesday that the boom in natural gas production in the U.S. reached a record high last year, increasingly substituting for imported foreign oil.

Meanwhile, the 
U.S. oil production grew more in 2012 than in any year in the history of the domestic oil industry, which began in 1859, and is set to surge even more in 2013. The U.S. produced an average of 6.4 million barrels a day last year.

As a result, for the first time in recent memory, an energy-sufficient U.S., independent of foreign oil, could become a reality,
unthinkable only a few years ago. The development will have huge geopolitical implications, especially in the Middle East.

The breakthroughs in the drilling technique known as hydraulic fracturing, or fracking, are driving the increase in U.S. oil and gas production.


Meanwhile, in an interesting and probably related news, the Dow Jones Industrial Average reached a historic high on Tuesday, eclipsing the previous closing highs set in October of 2007, before the financial crisis.

File photo: Natural gas production using ‘fracking’ method (Getty Images/money.CNN.com)

4 comments:

  1. Nader, I keep hearing about the U.S. becoming self-sufficient in oil but then I go to fill up my vehicle and the price per gallon for regular gas is $4.30, sometimes higher.

    The code word in our press is it's due to "speculators". Even our political reps use this term, instead of citing the real culprit: the boomerang effect of our own Iran sanctions.

    Very frustrating.

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  2. work off your frustration with posts showing all the new construction in California!!

    we would all love to see artist's conceptional drawings of the new bridge that you're going to live under.

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  3. Give it a decade or so and you will see the major shift in Energy markets toward the US with this new technology.

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  4. US still needs to import 50% of its crude oil requirements despite increasing shale oil production
    http://crudeoilpeak.info/us-still-needs-to-import-50-percent-of-its-crude-oil-requirements-despite-increasing-shale-oil-production

    How many million cars were converted to CNG, how many trucks converted to LNG? Anyone?

    ReplyDelete