The figure reflects a huge surge in U.S. oil drilling, up nearly 60% in the past year and the highest total since at least 1987, when oil services company Baker Hughes Inc. began keeping track.The drilling boom is being driven by a variety of factors. New technologies have allowed companies to tap vast new oil reserves in places like North Dakota, Texas and, most recently, Ohio. High oil prices are making once-unprofitable fields more tempting. And low natural-gas prices are leading companies to shift their focus to finding oil. Natural-gas drilling, which generally uses the same rigs but in different places, is down 8% in the past year.
All that drilling is helping to boost U.S. oil production. The U.S. pumped 3.9 million barrels a day from onshore fields in March, up 5.9% from a year earlier and the most in nearly a decade.
Rising production—along with other factors such as increased use of alternative fuels and reduced consumption due to more fuel-efficient cars—is helping to make the U.S. less dependent on foreign oil. U.S. crude oil imports last week were down 11% from a year ago; on a percentage basis, the U.S. imported less of its oil last year than any year since 2003.
The trend may not continue, however. Oil prices have fallen to about $85 a barrel in recent weeks, down sharply from their highs of well over $100 a barrel last spring. The drop won’t make companies stop drilling, but lower prices combined with higher costs could be enough to slow the rig count’s rapid rise.
