EOG Resources Inc (EOG), Continental Resources, Inc. (CLR): Peak Oil Is Not Here Yet

Foolish bottom line
The surge in U.S. oil production over the past two to three years has put the U.S. well on the road to energy self-sufficiency, though there is still plenty of work left to be done. The reduction of U.S. demand for oil imports should lead to lower oil prices over time. (Indeed, Brent crude futures prices imply that the market expects oil prices to drop by roughly $10 a barrel over the next year.)

Even if U.S. production continues growing, there is no guarantee that lower oil prices will result. This year, geopolitical turmoil has kept prices elevated. Tensions related to Iran’s nuclear program and the ongoing civil conflict in Syria have raised risk perceptions globally. Meanwhile, unrest in Libya and Iraq have led to production declines in both countries recently.

However, as long as conditions in the Middle East and North Africa don’t get worse — and especially if they get better — the shale revolution in North America may be on the verge of finally reining in world oil prices. Consumers will undoubtedly rejoice if that happens.

The article U.S. Oil Production Soars Toward Historic Highs originally appeared on Fool.com.

Fool contributor Adam Levine-Weinberg and The Motley Fool have no position in any of the stocks mentioned. 

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