While the media fixates on the political spin around the Obama governments rejection of TransCanadas Keystone XL pipeline, theres another, more important element to this story that has been grossly underplayed: growing domestic U.S. oil production, which will slash U.S. dependence on imported oil in the years ahead.
After decades of decline, U.S. oil output is growing rapidly again, thanks to the use of fracking (hydraulic fracturing) technology to open up previously untapped tight oil or shale oil deposits. (So much for Peak Oil theory.)
Some analysts say North Dakotas Bakken field alone where output has doubled to more than 500,000 barrels a day over the past two years could produce as much as one million barrels a day in a few short years.
Thats nearly as much oil as the U.S. now imports from Mexico (its third-largest source of foreign crude, behind Canada and Saudi Arabia), and almost half as much as the 2.3 million barrels a day the U.S. currently imports from The Great White North, the top foreign supplier.