oil rigs
A
row of oil pumps work in the desert oil fields of Sakhir,
Bahrain.


AP/Hasan
Jamali



Oil rigs are returning to the U.S. at the fastest rates in two
years due to rising oil prices.

There are currently 712 active oil rigs in the U.S., up from 316
in the middle of last year. The number of operating American oil
rigs has
increased for 17 straight weeks
.

Much of this rise in the number active oil rigs is attributable
to a stabilization of oil prices and the development of
fracking of American shale.

New technologies mean that America is producing
more oil and has larger oil reserves than ever
before, according to a
report by the International Energy Agency
. IEA predicts
that America could produce a record high of 14.2 million barrels
of oil per day within five years. Currently, Saudi Arabia
produces just
over 10 million barrels of oil per day
.

The majority of new oil and natural gas drilling in the U.S. is
happening in Texas, according to a
report published by the federal Energy Information
Administration
. American oil and gas drilling is increasingly
concentrated in the Permian Basin, which spans parts of western
Texas and southeastern New Mexico. The Permian now has
nearly as many active oil rigs as the rest of the U.S. combined.

Oil production in the region has spiked drastically since early
2015, while production in other areas has fallen due to low oil
prices. Permian oil is relatively cheap to access and refine
since it’s close to most American refineries.

Fracking is the process of using a high-pressure water
mixture to release natural gas or oil from rock,
unlocking reserves that were previously economically
unfeasible to access. The process has triggered an
oil and natural gas boom, which allowed
the U.S. to pass Russia
as the world’s largest producer of
both oil and natural gas.

Get the latest Oil WTI price here.

Read the original article on Daily Caller News Foundation. Copyright 2017. Follow Daily Caller News Foundation on Twitter.



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