14 Dec '12, 2pm
Drumbeat: December 14, 2012
In recent months the growing supply of “tight” oil in the U.S. produced by fracking has sent numerous organizations and publications into frenzies of exuberance as they described the good economic times that are about to come from so much domestically produced oil. This week the U.S. Department of Energy and even the U.S. Intelligence Community joined in with optimistic forecasts. A National Intelligence Council advisory group issued a report talking about a “tectonic shift” that could have the U.S. producing some 15 million barrels of oil per day and becoming a major energy exporter by 2020. This will cut oil prices, increase economic growth, and add millions of jobs. Although the U.S. Energy Information Administration is not quite as enthusiastic as the intelligence folks, its latest forecast sees U.S. oil production increasing by 234,000 barrels a day (b/d) each year un...