US Oil Production Increased More Last Year Than Any Other Year in US History

Note: In trading today, oil has fallen below $50 for the first time since 2009.

The chart below shows the oil production gains that arecausing the crash in oil prices. However, much of the new production is high cost production. With the new low oil price, this production becomes unsustainable. Thus, the production is likely to decline, a downturn will occur in "oil boom" states. The oil price will eventually stabilize and the price will then start to climb again.

(via Mark Perry)