Oil outlook positive for years to come

The oil boom has decreased U.S. dependence on foreign energy sources.

The Energy Information Administration released an early version of next year's Annual Energy Outlook yesterday. The most salient takeaway? The oil boom is going to continue unabated, and may even stretch into the next decade.

Per the agency's estimates, the country will produce an additional 800,000 barrels per day in 2014, and add the same amount the following year, causing total U.S. production to reach 9.5 million barrels per day by 2016. That number would be just a hair shy of the all-time high of 9.6 million barrels per day, an output the country hasn't seen in more than 40 years. All told, this adds up to a much smaller dependence on foreign oil, and a greater flexibility when it comes to approaching global trade. 

The forecast cites the influence of technological innovation, such as improvements in hydraulic pumps and other artificial lift solutions, as major catalysts for the increased production capability. 

"Ongoing improvements in advanced technologies for crude oil and natural gas production continue to lift domestic supply and reshape the U.S. energy economy," the report reads. 

The new equipment allows geographical formations that were once thought to be impenetrable to become viable sites for drilling. Not only does this have an effect on the energy economy, it also creates jobs and revenues that help to support the country as a whole. In particular, regions where oil activity is high have seen meteoric boosts in their average income and employment opportunities, as well as all of the secondary benefits afforded by the boosted cashflow.

Current drilling efforts have the United States well positioned to address energy concerns for the foreseeable future.