Energy is Making America Stronger

on December 30, 2014 at 2:00 PM


Oil Boom Shifts The Landscape Of Rural North Dakota

Enjoying Your Cheap Gas? Thank Fracking

One of the biggest stories of 2014 has been the astonishing drop in global oil prices. The price of the benchmark Brent crude went from over $100 per barrel at the beginning of the year to the $60 range as of this writing.

It’s worth noting how massive and completely unexpected this price drop has been.

And it’s worth noting how good it is for the U.S. economy. The price of oil is one of the biggest drags on consumer demand, the largest driver of the economy.

And to what do we owe this miraculous event?

In a word: fracking.

Fracking has allowed the U.S. to extract a lot more oil from the ground, but also a lot more natural gas. As natural gas replaces oil as a power source, the demand for oil falls, which, all else being equal, lowers prices.

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By Mark Green

Originally posted December 29, 2014

Energy Tomorrow is brought to you by the American Petroleum Institute (API), which is the only national trade association that represents all aspects of America’s oil and natural gas industry. Our more than 500 corporate members, from the largest major oil company to the smallest of independents, come from all segments of the industry. They are producers, refiners, suppliers, pipeline operators and marine transporters, as well as service and supply companies that support all segments of the industry.