In the midst of a troubling week as our nation’s lawmakers contemplate how to respond to the chemical weapon attack in Syria and discern our role on the international stage, our country received some much-needed, heartening news regarding the U.S. energy picture, which holds great hopes for our economic future.
The Energy Information Administration reported that last week’s oil production more than two decades of daily production. The U.S. produced an average of 7.621 million barrels of crude oil per day last week, the highest daily average in 24 years.
IPAA’s chief economist Fred Lawrence affirmed the independents’ part in this economic success story on The Energy Makers’ 100th epsidode. “The independents played the key role in the transformation taking place…twining two very important technologies hydraulic fracturing and horizontal drilling to access new geological horizons for both shale gas and tight oil.”
Fred continued, “The specific DNA of the independent was critical because they had the entrepreneurship and the technological acumen to figure out how to develop these wells. They drilled a lot of wells and did a lot of tests and they weren’t afraid to take risks and that led to the development of the Barnett shale and since then a proliferation of shale gas plays and now, tight oil plays.”
That was the beginning of the story, a story that is only getting bigger and better.
Newspaper headlines from around the country echoed the same rally this week: This eruption of U.S. oil and natural gas production is huge, and it’s rescuing our economy.
An IHS Cera report released by the U.S. Chamber of Commerce brought new findings of the vast economic benefits to light. The expanded energy development resulting from horizontal drilling and hydraulic fracturing now supports 2.1 million jobs, directly and indirectly. This number is only expected to grow. By 2020, oil and gas activities will support 3.3 million jobs. For people struggling to find work, this is welcome news.
The shale revolution contributed $163 billion to U.S. households last year. But what does that mean for the average family? IHS found that the oil and gas boom added about $1,200 to the average American household income, thanks to lower energy costs brought about increased natural gas production. These added savings are also only expected to grow. By 2020, IHS projects that shale energy production will contribute just over $2,700 to the average household. By 2025, it will reach $3,500 a year. In a time when many families are living paycheck to paycheck, this added money makes a world of difference.
Check out more great headlines:
USA Today: U.S. energy lifting economy more than expected
Bloomberg: Fracking Boom Seen Raising Household Incomes by $1,200
San Antonio Business Journal: Recent rise of U.S. shale plays an economic game changer
Fox News: Energy Boom to Help Boost American Jobs, Salaries
National Journal: Let Us Frack or the Economy Will Suffer
The Hill: Booming oil production boosted GDP estimate, White House advisers say