U.S. Oil Production Hits 15-Year High at 6.41 Million Barrels Per Day

---

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The U.S. Department of Energy (DOE) reports that domestic oil production capacity has increased by 766,000 barrels per day (BBL/d) to a total volume of 6.41 million BBL/d. This is the highest level in 15 years, and the largest increase in production since the first well was drilled in 1859.

Looking to take advantage of the sustained high oil prices, companies in the sector have set up 1,423 rigs in 2012. This is the highest number of oil rigs set up in one year since records began in 1987. Parallel to this leap in oil production, imports have fallen 38% and now represent 41% of the national oil supply, down from 60%. This is a major indicator that the U.S. could be energy independent by 2030, or before that date.

"The U.S. has a huge lead in the 21st century in maintaining superpower status," said Ed Morse, global head of commodities research at Citigroup. "There was absolutely no way to anticipate the level of growth in the oil supply."

The introduction of the technology of hydraulic fracturing ("fracking") has made drilling cheaper, faster and more productive, and has been instrumental in the exploitation of shale gas oil resources.

U.S. oil stockpiles have increased a record 13% as a result of the extra production. This has gone hand-in-hand with export restrictions, which have contained oil produced in the domestic market. As a result, the price of a barrel of U.S. light sweet crude has, at times, fallen as much as $28 lower than a barrel of Brent crude. This price difference has given refiners on the Gulf coast an advantage over foreign competitors and has helped the U.S. to become a net fuel exporter for the first time since 1949.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.