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This afternoon, the Energy Information Administration released updated energy production data and new forecast projections in its monthly Short-Term Energy Outlook. Here are some highlights:
1. In April, U.S. total crude oil production averaged 8.3 million barrels per day (bpd), which is the highest domestic oil production in any month since March 1988, more than 26 years ago.
2 Based on actual US oil production data through April, and Energy Information Administration forecasts for US oil production through 2015 (averaging 8.5 million bpd in 2014 and 9.2 million bpd in 2015) the chart above shows that the US is on track to produce almost 10 million barrels of oil per day by the end of next year. If the EIA forecast is correct, US daily oil production by next December will almost reach the previous all-time record level of daily domestic crude oil production of 10.04 million barrels set back in November of 1970 (see chart). From the 1970 production peak, US crude production gradually fell over the next forty years and was down to only 5.3 million bpd in July 2010. In just the last three and-one-half years, thanks to America’s amazing shale revolution, crude oil output is back up to 8.3 million bpd and back to 1988 production levels. By the end of next year, domestic crude oil production will be approaching 10 million bpd again and back to the 1970 peak level of output.
The amazing turnaround in domestic crude oil production since the summer of 2010, thanks to the revolutionary drilling technologies that allowed America’s petropreneurs to access unconventional oil trapped in shale formations deep below the ground, is a true free market triumph and a testament to the deep pools of ingenuity, innovation and entrepreneurship that exist in the US. The projected complete reversal in just five and-one-half years of a forty-year steady decline in domestic oil output supports my claim that America’s Shale Revolution is the most remarkable economic success story in at least a generation, and maybe in all of US history.
Welcome to The Great American Energy Boom. Carpe oleum!
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