MADetail

Increased Production and Fewer Imports Keep Gas Prices Steady - 10/20/2014


American’s are already reaping the benefits of increasing energy independence. People all over the U.S. are paying lower prices at the pump and it is thanks in part to hard work right here in Oklahoma. OIPA President Mike Terry explains why the energy boom is not only keeping more money in families’ pockets but also insulating the U.S. from effects of international conflicts.

"Despite increasing violence and turmoil in the Middle East, gasoline prices are falling thanks to America’s independent producers.

New and improving oil-field technology has allowed U.S. drillers to consistently increase production from fields across the country, including those in Oklahoma. The result is American crude oil production that has increased by nearly 60 percent and is set to exceed Saudi Arabia’s crude production this month or next for the first time since 1991. In Oklahoma alone, crude oil production has more than doubled in the past five years and has reached levels not seen in the past three decades.

That increased production has breathed new life into Oklahoma’s economy through increased jobs, royalty payments and tax revenue. It is also benefiting the pocketbooks of all Oklahomans, who have insulated themselves from the gasoline price spikes of years past in spite of the turmoil in Syria and Iraq, fighting in Libya and Russia’s conflict with Ukraine.

Crude oil imports are expected to provide just 21 percent of U.S. liquid fuel consumption next year, down from 60 percent less than 10 years ago. If not for the North American shale boom, the tumultuous situation in the Middle East most likely would have sent gas prices well above $4 and oil prices above $125 per barrel. Instead, gasoline prices in Oklahoma and the rest of the nation have gone the other way, with the per-gallon price falling below $3 in places around the state. According to a recent study by IHS, if producers in the United States were able to export crude oil, per-gallon prices would decrease by an additional 8 cents.

The same crude oil renaissance that benefits Oklahoma consumers strikes a blow to the Mideast countries that have used a wealth of oil reserves as a political weapon, most notably the 1973 Organization of Petroleum Exporting Countries oil embargo. With a plentiful and accessible supply of crude oil and natural gas, our nation is now free from political decisions based on a dependence on Mideast oil, and energy independence is no longer a pipe dream."

Read more: http://journalrecord.com/2014/10/03/terry-a-dream-comes-true-opinion/#ixzz3GifKBRkD