Sustained, high oil prices have produced a renaissance in the US oil industry during the last 4 years that is just remarkable. US oil production is at about 6.2 million barrels per day, up 25% since 2008, and at its highest levels since 1998. www.eia.gov/todayinenergy/detail.cfm?id=6610. All that oil is worth about $200 billion per year, even at $80 per barrel.
Rising US oil production continues and could break the 7 million barrels per day mark in 2013. Production increases of 1.2 million barrels per day may soon be 2 million barrels per day, compared to 2007 numbers.
As Uncle Sam produces more oil, he consumes less. US demand for oil peaked in 2007, and our thirst for oil has declined to 1999 levels. More fuel efficient cars replacing gas guzzlers and rising use of substitutes like ethanol and natural gas are part of the reaction to sustained, high oil prices.
US changing oil production and consumption is big enough to affect the global oil price. More on that in an upcoming post.