The largest source of world energy today is oil in the form of refined products such as gasoline, diesel fuel and jet fuel. Since these liquid fuels are ideally suited for transportation, oil will remain the leading world energy source at least through 2040, according to the U.S. Energy Information Administration’s International Energy Outlook 2014.
Fortunately for North America, an oil production renaissance is under way, driven by rising production from tight rock reservoirs, shale rock and oil sands. U.S. production has increased by more than 2 million barrels per day in the last 2 years, reaching levels not seen since 1988. Most of the increase is from the rapidly growing Bakken, Eagle Ford and Permian drilling plays in North Dakota and Texas. This upsurge has reduced the need for U.S. oil imports, improved the balance of trade, stimulated the national economy and created hundreds of thousands of new jobs.
All of this new oil production is in addition to what the U.S. has been producing for years in states like California, Alaska, Texas and Oklahoma. And significant oil exploration and development opportunities still exist on the North Slope of Alaska, as well as exploration prospects offshore.