Shale oil development to cut U.S. reliance on imports

January 25, 2012

While attention in the oil industry remains firmly fixed upon the Middle East, the U.S. Energy Information Administration suggests that America could soon become substantially less reliant on such foreign sources of energy, according to Reuters.

The energy agency suggests the rising prominence of shale oil development, in large part because of the proliferation of new processes like hydraulic fracturing, should lead to a dramatic rise in oil production in the U.S.

Between the 2010 and 2020, the EIA estimates that oil production will rise nearly 22 percent to 6.7 million barrels per day from only 5.5 million barrels per day. This estimate dramatically outstrips previous estimates for the country's production, which had previously come closer to 6 million barrels per day.

The reasons behind this rise are quite clear, however, with shale oil exploration bringing that sector from 21 percent of production in 2010 to 31 percent in 2035.

The EIA also notes that growing use of domestic natural gas resources and renewable energy projects should serve to reduce reliance on imports.

Detailed reports on shale oil exploration in the U.S. can be found at PennEnergy's Research area.