Supplies of oil in North America are more abundant than previously realized, according to a recent study by the National Petroleum Council that was reported on FuelFix.com.
The Council undertook a study of American reserves of oil and natural gas and determined that advanced production technologies can untap plentiful oil reserves onshore, as well as in the Gulf of Mexico and the Canadian Tar Sands. With these reserves, North America has the potential to be more self-reliant for oil, according to the Council's report.
"Contrary to conventional wisdom the North American oil resource base also could provide substantial supply for decades ahead," the Council's report said. The Council is an expert panel convened by the U.S. Secretary of Energy.
FuelFix reported that by 2035 oil from shale formations in the northern United States and South Texas could yield 2 million to 3 million barrels of oil per day. Under the most optimistic assumptions the U.S. and Canada combined could produce up to 22.5 million barrels per day, the Council's study concludes.
The strong rally occurring in U.S. oil production has inspired Goldman Sachs to predict that the U.S. will be the world's top producer of oil by 2017. The U.S. currently trails Russia and Saudi Arabia.
Daniel Yergin, a member of the National Petroleum Council and the chairman of IHS Cambridge Energy Research Associates, discussed oil production and the North American oil supply in a recent Wall Street Journal essay entitled "There Will Be Oil".
To read the article on FuelFix, click here.