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Seize the oil moment, API says

  |   Dec. 10, 2012 at 7:33 AM
WASHINGTON, Dec. 10 (UPI) -- The U.S. federal government needs to step aside to allow the energy industry to take advantage of unprecedented oil opportunities, a trade group said.

The U.S. Energy Department's Energy Information Administration reported that crude oil production could reach 7.5 million barrels per day by the end of the decade.

"The growth results largely from a significant increase in onshore crude oil production, particularly from shale and other tight formations," the EIA report stated.

The American Petroleum Institute, a trade group representing hundreds of oil and gas businesses, said the report suggests the United States could sustain itself as a world energy leader.

"But, in order to move forward with this remarkable opportunity, we must avoid public policies that raise taxes, impose burdensome and unnecessary regulations, or pit one energy source against another," said Rayola Dougher, a senior economic adviser for the API.

Technological breakthroughs in oil exploration and production have unlocked reserves previously off limits. Last week, Marathon Oil and Anadarko Petroleum announced plans to invest heavily in shale reserves.

The EIA report says U.S. crude oil production starts to decline after 2020. By 2040, the EIA states, U.S. oil production should average 6.1 million bpd.

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