US is global leader in oil and gas production
The United States is continuing to draw closer to energy independence, as it has surpassed Saudi Arabia and Russia and is now the largest producer of natural gas and oil in the world, due in large part to hydraulic fracturing. This technology has enabled oil and gas operators in the U.S. to drastically decrease their natural gas imports, as these operators are now able to access shale formations miles underneath the surface and unlock huge reservoirs of oil and natural gas.
The Energy Information Administration recently reported that natural gas imports in the U.S. have decreased for eight straight years, including by 9 percent in 2014. Similarly, as a result of the development of Pennsylvania’s Marcellus Shale, there is now more natural gas being exported from New York to Canada, than natural gas being imported to New York from Canada.
According to data from British Petroleum (“BP”), oil production in the U.S. increased by 1.6 million barrels per day in 2014, for a total of 11.6 million per day on average. This increased oil and gas production has led to substantial savings for U.S. consumers. For example, in 2014, the price per barrel of oil decreased from over $100 to under $60 because of this production. Moreover, a recent study conducted by the American Automobile Association (AAA) found that shale development has saved Americans 40 cents per gallon of gas.