The oil production in the United States has been ramped up so dramatically that it becomes one of the largest oil producers, along with Saudi Arabia and Russia. The surge began in 2008, the American oil production skyrocketed from 5 million barrels per day to nearly 10 million barrels per day last year. Analysts in the oil industry predicted that we would see plenty of benefits as more oil comes out from under the US soil.
It is expected that the U.S. economy would be boosted and a new renaissance in manufacturing would begin. The United States would also be less dependent on foreign energy suppliers and it would have lesser footprint in the volatile political climate in the Middle East. Yet, none of these prediction has happened, so why not?
Shale oil fields in North Dakota have fuelled the oil boom in the United States, but they still don’t turbo-charge the national economy. Shale reserves in the state are cheap and abundant. Oil prices have dropped and consumers have more money to spend on other products. At some levels, that’s all true. As people spend less money to fill up the tank, they buy more snacks and soda. However, the oil industry has become a major part of the U.S. economy and when prices go down, many workers and other industries are affected. People in the United States used to worry about excessively high prices; but an increasing number of people start to question what happens when oil prices continue to go down.
Written by Zezom.com News Staff.