The Energy Information Administration (EIA) recently announced that U.S. oil production in 2014 had the largest one-year volume increase in over 100 years. U.S. crude oil production increased by 1.2 million barrels per day to 8.7 million barrels per day in 2014–the largest increase since recordkeeping began in 1900. Oil production increased by 16.2 percent in 2014–the highest annual growth rate since 1940. The shale formations in North Dakota, Texas, and New Mexico were the major contributors to the increase due to hydraulic fracturing and directional drilling technology. Crude oil production increased in each of the last six years—a reversal of the trend from 1985 to 2008 in which crude oil production fell in all but one year. (See chart, picture 1, below.)(i)
