EIA: Thanks to Fracking, Energy Security Increases, While Cost of Living Falls
This week, U.S. shale continued its record of providing benefits to Americans across the country. The latest data from the EIA states that since 2014 lower oil and natural gas prices have led to a reduction in household energy costs. Additionally, the EIA reported that our nation’s reliance on foreign oil dropped to levels not seen since the 1980s, further increasing U.S. energy security. Despite the chaotic price environment, shale continues to deliver tangible, measurable benefits to Americans.
According to data from the EIA lower oil and gas prices from fracking have resulted in a $747.30 savings in the average American household per year. In 2015 alone, energy prices dropped over 40 percent thanks to fracking, and from June 2014, to February 2016, oil and natural gas prices dropped by 71 and 56 percent respectively. These low prices are passed directly to consumers who use the cheaper energy in their homes, cars, and work places. An energy and environment reporter described how benefits of lower energy costs are far reaching stating:
“When the price of energy decreases, the cost of goods and services produced declines as well. Any product that is transported to market via truck or car uses gasoline and virtually every service uses electricity. Thus, low energy prices effectively reduce the price of almost everything.”
In addition to lowering energy costs, fracking has also allowed the U.S.to lessen its reliance on foreign oil and gas imports. Thanks to the massive shale plays that dot the country, foreign natural gas imports have dropped to their lowest levels since 1986. This means that our nation does not have to depend on other countries in order to meet our energy needs. We can now purchase most of our energy right here at home, keeping our dollars in the pockets of U.S. businesses. The less energy we import from outside nations, the more secure America’s energy future becomes.
Fracking has transformed the energy landscape of America in the last five years, and it is clear that it has no plans of slowing down. Thanks to U.S. shale, Americans are witnessing a large drop in the cost of living, and watching the energy security of our nation grow stronger each day.