U.S. may need more foreign oil as drilling falls

A sharp drop in U.S. drilling spurred by lower oil prices, scarce funding and potential tax hikes may thwart the Obama administration’s plans to end U.S. reliance on foreign oil.

U.S. oil output is poised to rise 8 percent this year to 5.4 million barrels per day — the first increase since 1991 after a six-year rally in prices fed exploration and production projects — according to the U.S. Department of Energy.

But the drilling spree has collapsed alongside a 65 percent slump in oil prices since last July, putting any increase in domestic output at risk and raising the specter of increased foreign dependence in years to come.
Reuters