When output increases because of improved technology, it often leads to an economic phenomenon known as "technological advancement" or "technological progress." This occurs when advancements in technology enable the production of more goods or services with the same or fewer resources. In the context of the U.S. oil production described in your statement, the use of hydraulic fracturing technology allowed for increased oil production, even surpassing previous peak levels from 1970.
Technological advancement can have several economic implications, including:
1. **Increased Efficiency:** Improved technology often leads to more efficient production processes, reducing production costs per unit and potentially increasing overall output.
2. **Economic Growth:** When output increases, it can contribute to economic growth by expanding industries, creating jobs, and boosting economic activity.
3. **Competitiveness:** Nations or firms with access to cutting-edge technology can gain a competitive advantage in the global market, as they can produce goods or services more efficiently and at a lower cost.
4. **Higher Standards of Living:** Technological progress can lead to higher standards of living as it allows for the production of more goods and services, providing consumers with a wider range of choices and potentially lower prices.
5. **Resource Conservation:** Improved technology can sometimes lead to more sustainable resource use by reducing waste and optimizing resource utilization.
In the case of U.S. oil production, the adoption of hydraulic fracturing technology led to a resurgence in oil production and played a significant role in the energy landscape. However, it's worth noting that technological advancements can also raise environmental and ethical concerns, which require careful consideration and regulation.