IEA chief Maria van der Hoeven, seen in a 2011 photo, said that North American production has set off a "supply shock that is sending ripples throughout the world."
Credit AFP / AFP/Getty Images
U.S. oil production is rising sharply and increased output from shale will be a "game changer" in global energy markets in the coming years, according to a new report out Tuesday by the International Energy Agency.
Oil field workers drill into the Gypsum Hills near Medicine Lodge, Kan. Hydraulic fracturing, or "fracking," to coax out oil and gas has led to a natural gas boom that the U.S. market is having trouble absorbing.
There's a boom in natural gas production in the United States, a boom so big the market is having trouble absorbing it all.
The unusually warm weather this winter is one reason for the excess, since it reduced the need for people to burn gas to heat their homes. A bigger reason, however, is the huge increase in gas production made possible by new methods of coaxing gas out of shale rock formations.
The White House will unveil a report today showing that U.S. dependence on foreign oil imports has dropped by more than two million barrels a day since President Obama took office.
The report shows U.S. imports at 8.4 million barrels a day last year from 11 million barrels a day in 2008. As a percent of all U.S. consumption, foreign imports went from 57 percent down to 45 percent in the same period, the report says.
Natural gas is burned off next to an oil well being drilled at a site near Tioga, N.D., in August. U.S. oil production started increasing a few years ago and is predicted to continue to rise, reducing the country's dependence on oil imports.
Originally published on Wed January 18, 2012 2:20 pm
Atkinson, Neb., rancher Bruce Boettcher, who opposes the Keystone XL pipeline, kicks up sand on his land, to demonstrate the fragility of the sandhills near the planned route of the pipeline.
Credit Nati Harnik / AP
Saying it did not have sufficient time to properly vet the proposal, the State Department said it would recommend rejecting a proposal by TransCanada to build a 1,700 mile pipeline, which would carry oil from Canada to refineries in Texas.