Crude Oil & Product Markets
The Changing Landscape of North American Oil Markets
After decades of decline, crude oil production in the United States has recently been increasing rapidly. Horizontal drilling and multistage hydraulic fracturing are now utilized to access oil and natural gas resources from shale rock formations that were previously either technically impossible or uneconomic to produce. Production from the oil sands in Western Canada has also risen significantly. In aggregate, production in North America has grown from 7.5 million barrels per day in 2008 to 11.0 million barrels per day in 2013, an increase of over 45% in a five year period.
These new supplies, which are available to meet U.S. domestic petroleum product demand, have substantially reduced U.S. dependence upon crude oil imports from overseas. Continued efficient development of domestic resources promises even greater improvement in the domestic supply-demand balance.
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