Giving Thanks to the Shale Revolution
This Thanksgiving, the shale revolution is bringing an important gift to families across America: falling oil and gas prices. Thanks to abundant domestic energy supply, more families can afford to visit loved ones this year.
AAA predicts that 48.5 million Americans will plan a road trip this week, the highest Thanksgiving travel volume since 2005, with 2.5 million more people taking to the nation’s roads, skies, rails and waterways than last year.
Patrick DeHaan, head of petroleum analysis at online fuel price provider GasBuddy, said:
“With prices falling so noticeably the last couple weeks, I’d expect more last minute trips to happen.”
Falling prices will boost the economy and bring saving to consumers – just in time for the holiday season. The Oil Price Information Service forecasts that prices may drop to $2.25 per gallon. The average household could save $20 to $40 a month, depending on how low prices go.
Chris Lafakis, an economist at Moody’s analytics, said:
“It’s going to put more money in consumers’ (pocketbooks) to spend on other goods and services.”
Once they reach their destinations, more families can also thank natural gas for the hot meal. According to the U.S. Energy Information Administration, 38 percent of households rely on natural gas or propane for cooking. In the Northeast and West, households take greater advantage of natural gas for cooking with 46 percent and 41 percent of households utilizing natural gas, respectively. These numbers don’t even account for the growing number of electric stoves powered by natural gas, as more utilities transition to the clean-burning fuel.
There is a lot to be thankful for this Thanksgiving. The U.S. oil industry has flourished in recent years as a result of shale development, supporting job growth and greater national security. Increased production yields economic opportunity and direct energy savings for consumers across the United States. According to a recent series of reports by the Consumer Energy Alliance, consumers in New Mexico, Texas, Colorado, and the Appalachian Basin saved over $155 billion between 2006 and 2016.
From all of us at Energy in Depth, we wish you safe travels and a happy Thanksgiving!