Shale Production Booms and Foreign Oil Imports Decline

Shale plays, like the Eagle Ford, are contributing to U.S. production growth that has pushed imports of foreign oil below 50%. That’s down from more than 60% just 5 years ago. While hydraulic fracturing is highly debated, its use combined with horizontal drilling has shifted the U.S. from a position of a majority consumer to a producer who supplies most of its oil needs. We’re a long way from producing enough oil for the country, but at least we have a bargaining chip at the table.

We can produce more oil and have untapped reserves in the ground. If you have a couple of minutes, this is a pretty good article from the LA Times. 

U.S. net petroleum imports have fallen to about 47% of the nation’s consumption, down from a record 60.3% in 2005, Energy Information Administration statistics show. It’s been 15 years since the nation’s reliance on foreign oil has been this low.

Several factors figure into the import decline, but a big one is a little surprising: U.S. petroleum exploration is experiencing a quiet renaissance with the help of technology and new drilling techniques.

The number of oil rigs in production in the U.S. has reached a 24-year high, according to oil field services company Baker Hughes. In 2005, domestic production was 1.89 billion barrels. This year, experts say, production is expected to surpass 2 billion barrels.

Read the full news release at latimes.com

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R.T. Dukes

R.T. Dukes

Managing Editor at EagleFordShale.com
R.T. is the managing editor of EagleFordShale.com. In prior roles, he advised major oil companies on strategy, the macro business environment, and opportunity screening. 2503 Robinhood, Houston, TX, 77005, U.S.A. | Telephone: 832.429.4790

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