The December 18th edition of Bloomberg Businessweek reports that the U.S. expanded its oil production this year by the most since the first commercial well was drilled in 1859. Domestic output grew by a record 766,000 barrels a day, to the highest level in 15 years, government data show, putting the nation on pace to surpass Saudi Arabia as the world’s largest producer by 2020. Net petroleum imports have fallen by more than 38% since the 2005 peak and account for 41% of demand, down from 60% seven years ago, moving the U.S. closer to energy independence than it has been in decades.
This oil rush was spurred by new technology that has made drilling faster, cheaper, and more effective at recovering oil from rock formations. At the same time, it has raised alarms among environmentalists about the potential danger to drinking-water supplies and intensifying greenhouse-gas emissions.
The surge in oil output, coupled with record natural gas production, allowed the U.S. to meet 83% of its own energy needs in the first eight months of 2012, on track to be the highest since 1991, Energy Department data show.
Potentially, the U.S. could become an oil exporter, although exports are limited by rules imposed by Congress following the 1973 Arab oil embargo.
