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Crude oil shipments are picking up within the US. Image: Flickr
Value of Imported Crude Oil Experiences Dramatic Fall
A report issued by the Commerce Department indicates that the value of oil imported from outside of the U.S. has experienced a dramatic decrease due to the rise in domestic production.
This is further evidence that America is progressing steadily towards energy independence. It is demonstrative of the fact that oil investments are contributing to the nation’s self-sufficiency and reducing the extent to which it is reliant upon external energy sources.
U.S. Energy Information Administration senior analyst Doug MacIntyre puts the decrease in America’s reliance on imports from other countries down to the shale oil boom in Texas and other states.
Shale oil and gas have had a massive positive impact upon the amount of crude oil and natural gas that the U.S. is capable of producing, with the Energy Information Administration stating that shale was responsible for forty percent of America’s natural gas production and twenty-nine percent of its crude oil production in 2012.
The Extent of Our Domestic Reserves
The EIA estimates that the U.S. contains six hundred and sixty-five trillion cubic feet of technically recoverable shale gas and fifty-eight billion barrels of technically recoverable crude oil.
Those who choose to invest in oil and gas are not only helping to boost U.S. self-sufficiency but also aiding the economy of some U.S. regions. Eric Morath of the Wall Street Journal has stated that the downward trend in oil exports is likely to lower the price of gasoline in areas of America that are reliant upon domestic crude oil.
This means that oil and gas investments will help to improve the locals’ livelihood in some parts of the country.
Other nations might be losing out with regards to the prices that they can sell oil to the U.S. for but their loss is America’s gain, as the country is becoming stronger both in economic terms and in terms of fulfillment of its energy requirements.
Oil Boom Strengthening America
Doug MacIntyre points out that the demand for imported oil was stable until the recent oil boom. Within the last few years, developments have occurred that have sent U.S. gas and oil production through the roof.
According to figures published by the EIA, shale gas and oil have brought about a thirty-five percent increase in America’s total crude oil resources and a thirty-eight percent increase in its total wet natural gas resources.
Large amount of shale gas and oil are quickly producible at a comparatively low cost. Shale has provided a tremendous boost to overall gas and oil production, bringing about a host of different benefits.
It has helped industries in some parts of the country to become more profitable, moved America further along in its journey towards energy independence and reduced the cost of imported oil.
The shale oil boom is clearly helping to strengthen the United States and elevate its position within the global hierarchy. The Commerce Department’s report is yet another indication of the positive effects that the dramatic increase in U.S. oil production is bringing about.
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