Ask anyone off the street where they think the world’s oil comes from and they’ll probably spout off names of countries like Venezuela, Saudi Arabia, and Iraq. And, to be fair, they aren’t totally wrong to think that. For a long time, a huge percentage of the world’s oil came from these countries. However, the shale revolution in America is causing the tide to turn.
Starting in 2006, horizontal drilling technology in conjunction with hydraulic fracturing techniques started allowing American oil producers to increase their yield in America’s shale fields by a huge margin.
Before the boom, shale oil wells in North Dakota were producing less than 100 thousand barrels per day. But in 2011, that number spiked by 400% to over 400 thousand barrels per day – an unprecedented increase! What’s even more amazing is that in July 2014, production skyrocketed to 1.2 million barrels per day, meaning a 1000% increase in production from 2005 to 2014.
It comes as no surprise that this enormous growth in the domestic energy industry has changed the economic landscape of the country, especially in the areas where drilling is most prominent.
Have a look at the graphic below to see how shale oil has already transformed the Bakken region of North Dakota.