Growing Energy Production Leading to Lower Gas Prices
Consumers Benefiting from Growing Domestic Oil Supply
(Washington, D.C.) – A key reason consumer gasoline prices are falling is the dramatically increased U.S. oil production which is helping bring world oil prices down. In the last 6 years, new technologies and drilling techniques have led to a doubling in oil production from the states of Oklahoma, Texas, and North Dakota. U.S. energy production overall has increased by 50 percent since 2008. This growing supply is one of the factors that has contributed to a reduction of 20-25 percent in the world price of oil in recent months. The construction of the still stalled Keystone XL Oil Pipeline has the potential to bring prices down further.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
"One of the great economic success stories of recent years has been the booming American energy sector. Growing U.S. production contributes to job growth, increasing tax revenues, and falling prices at the pump. While prices are still higher than they were in 2009 and wages remain stagnant, this success story coming from America's oil production is a welcomed relief for consumers and has little to do with Washington – which has done little to help.
Many sectors of our economy can be improved if Washington recognizes the negative impact of costly new regulations, and instead allows the private sector to innovate. American workers and consumers are the ones who will enjoy the benefits."