Fact: U.S. oil production this past July was 7.5 million barrels per day. That's the highest monthly output since 1991. It's now believed that in the U.S. oil production could exceed imports by October, which would be the first time since 1995. Production growth is being fueled by places such as the Eagle Ford Shale in Texas, where ConocoPhillips (NYSE:COP), for example, saw its production skyrocket by 98% in the past year.

Despite booming production, oil prices are stubbornly high, and currently well over $100 per barrel. Globally, cracks are being felt in the world oil markets as turmoil in Egypt has oil traders nervous. Meanwhile, global oil giant ExxonMobil (NYSE:XOM) for example, actually saw its production drop by 1.9% over the previous year, which, given its size, is a massive amount of oil. Despite spending billions, it simply cannot grow its oil production. 

It is this great dichotomy that has many wondering what to make of oil prices. The following slide show sheds some light on the future of oil and answers the question of whether $200 oil is fact or fiction.