U.S. oil production surged recently to the highest level since January 1997, reducing the country's dependence on imported fuels as new technology unlocks crude trapped in shale formations, according to Bloomberg News article.
Crude oil output rose by 3.7 percent to 6.509 million barrels a day in the week ended Sept. 21, the Energy Department reported. "America met 83 percent of its energy needs in the first six months of the year, department data show. If the trend continues through 2012, it will be the highest level of self-sufficiency since 1991," the Bloomberg article states. Imports have declined 3.2 percent from the same period a year earlier.
"This has been driven by [production from] shale, and the two states leading the way are North Dakota and Texas," Andy Lipow, president of Lipow Oil Associates LLC told Bloomberg. "It appears that over the next five years, U.S. oil production could climb to well over 8 million barrels a day."
Crude prices are set to decline over the next six to nine months because of rising production from the U.S., David Martin, an analyst at JPMorgan Chase & Co., said recently.
To read the Bloomberg article, click here.