Seven year ago (seven?!) when I started writing this blog, I would have never believed that a chart like this would be possible:
For 25 straight months, the state’s oil production rate has increased by more than 25 percent year-over-year, notes economist Mark J. Perry, a professor at the University of Michigan’s School of Management.
“Output in America’s No. 1 oil-producing state — Texas — continues its phenomenal, meteoric rise,” Perry wrote on his Carpe Diem blog. “That production surge has to be one of the most significant increases in oil output ever recorded in the U.S. over such a short period of time.”
It’s hard to say if this output can be sustained for any amount of time, or if it’s a last gasp effort to recover the oil left on the table to profit from the current high price per barrel. This oil renaissance has been happening around us for a few years now, and frankly, I never understood how big it was until today, when I saw this graph. I haven’t been writing about fuel for a while, instead concentrating on driver related safety, but this has my attention again in an unexpected way.
What do you think – is this an “oil bubble”? (Related: Is the word “bubble” being used too often to describe just about everything? Are we just living in a “bubble”, and didn’t know it?)