Thanks to American ingenuity, the energy crisis that faced the United States in the mid-2000s is all but forgotten. Today, technological advancements such as hydraulic fracturing and horizontal drilling have made the United States the world leader in oil and natural gas production.
After decades of heavy dependence on imported energy, the United States is now in a position of strength. The U.S. oil and gas industry has not only been a major driver of economic growth, revitalizing America’s manufacturing sector and reducing energy costs for consumers, but shale development has also allowed us to shift from a net importer to a net exporter—something that hasn’t happened in twenty years.
In fact, as Daniel Yergin, Vice Chairman of IHS, said earlier this year:
“Iran is now seriously at the table in nuclear negotiations, which might well not have happened were it not for tight oil. When strict sanctions were imposed on Iranian oil exports, many feared that world oil prices would spike, and that the sanctions would ultimately fail, owing to insufficient alternative supply. But the increase in US oil production over the last two years has more than made up for the missing Iranian output.”
The New York Times echoed Yergin’s comments in an October 2013 article:
“[T]he development of America’s shale resources is providing a level of supply security and price regularity for the global oil market, which means it’s also preventing the types of price spikes that ultimately harm American consumers.”
Check out EID’s new video – “Shale Development Enhances American Energy Security” – and learn more about how shale has changed the U.S. energy security outlook.