The latest EIA data confirms that the US oil boom is hitting new highs in 2012. During the first 7 months of 2012, production jumped another 12%, compared to the same period in 2011. See table 3.1 at:
Rather incredibly, the US will produce more oil this year than it has in the last 14 years and will surpass the 1998 production total. Moreover the data indicates that the oil boom is getting bigger as the year goes along. The highest monthly production this year was in July, the last month for which data was reported, and the last 5 months probably will see higher average production than was the case in the first 7 months.
Rising US oil production comes at a time of falling US oil demand, with demand back to approximately 1990 levels. This powerful combination is shrinking US oil imports but does little to moderate global oil prices, as global oil demand continues to increase by about 1 million barrels per year and the real possibility of war with Iran adds up to $20 per barrel.
Of course, US motorists pay global oil prices, and the average cost of gasoline in 2011 hit a record high of $2,850 per family. Such prices hurt US economic growth and can trigger recession, when prices reach $125 per barrel or more. The only remedy for this persistent economic threat is to move beyond oil to substitutes like natural gas, electricity, and biofuels as much as possible and as soon as possible.