Skip to content
Subscriber Only

Fracking Boom Could Finally Cap Myth of Peak Oil: Peter Orszag

Feb. 1 (Bloomberg) -- The U.S. oil market could be on the verge of its own fracking revolution, similar to what the natural-gas market is already experiencing. As a result, domestic production is now projected to rise significantly over the coming decades, reducing the relative share of imports in U.S. oil consumption.

Advances in horizontal drilling and hydrofracking, in which highly pressurized liquids are injected into underground rock, have been used increasingly over the past few years to extract natural gas. The result has been a substantial increase in recoverable reserves -- accompanied by a lot of controversy over fracking’s environmental effects -- and an associated decline in the cost of natural gas.