Cheap Gas Here To Stay
American companies and American ingenuity will keep gasoline cheap at the pump for years to come. You see when it came down to figuring out how to get more energy for less money it was America that made it happen and we are going to benefit for a long time.
To say it a more clearly; almost every day, fracking companies are inventing new equipment and techniques that are getting less expensive, not to mention more effective! Yes, America is right, again.
Now to the purveyors of high-price doom and gloom I will concede this: all it would take to drive oil prices up past $100 again is a war in the Middle East that disrupts oil flow in a significant way. That said however, the long-term fact is that the combination of horizontal drilling and fracking has unlocked trillions, literally trillions of barrels of oil that was previously unrecoverable. This has greatly devalued the power and influence of every nation that has hundreds of billions of barrels of easy to get conventional oil, specifically OPEC. The end of peak oil, the literal end of oil itself has been predicted by so called environmentalists and other left wing extremists since at least 1970. The fear mongers were wrong then and they are more wrong today but they cling to their tired inaccurate predictions anyway.
Make no mistake, fracking has changed the world, and it has done so for the better. Low oil prices help the world economy immensely, especially for developing countries and poor people everywhere. Fracking has given the world a big reprieve from high oil prices during the very technological period in which the engineering world is working on two great tasks: vastly improving the fuel efficiency of internal combustion engines and working on alternative sources of energy. The pursuit of so called green energy make take years or even decades so that’s another reason to say thank you to fracking.
Another important fact; US oil production has not fallen in the face plummeting oil prices as many predicted but instead American oil output has actually increased by half a million barrels per day since October 2014. Shale oil producers are getting more oil out of fewer wells and that factor is keeping the industry alive and thriving.
As can be seen from recent experience, predicting demand for oil is a difficult task. Technological advances make predicting supply levels even harder to achieve. America has always relied on enterprise and market forces to direct economic development and this strategy requires a degree of faith.
Recent falling oil prices did not lead to the extinction of fracking as many also predicted. No, instead it promoted efficiency in the sector, which brought further price decreases. Excess production will eventually squeeze out high-cost oil extraction that is certain- but it won't be American fracking companies that go out of business.
God bless America!