In 2008 America's daily oil production was 5 million barrels/day (bpd). In the first quarter of 2014 that number hit 11 million bpd, which is a 120% increase in just six years.
Meanwhile gas formations such as the Marcellus and Utica shales are fueling record gas growth. For example, from 2007 through 2035 the Marcellus/Utica shale is expected to increase production 34-fold, and the Marcellus alone is expected to be producing more gas than Quatar, the world's third largest gas producer, by September.
With the Marcellus and Utica shales estimated to hold as much as 480 trillion cubic feet of gas and the Permian Basin estimated to hold 75 billion barrels of recoverable crude, it's easy to see why investors might be getting excited.
However, many investors may be unaware of the sheer magnitude of North America's oil reserves:
- Canada's tar sands are estimated to hold a total of 2.5 trillion barrels of oil, though only 170 billion barrels are currently recoverable
- Total shale oil reserves are estimated at 3.1 trillion barrels, 58 billion currently recoverable
- Total US Shale Gas reserves are 20,450 trillion cubic feet
Adam Galas has no position in any stocks mentioned. The Motley Fool recommends Enbridge Energy Partners. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.