Data Spotlight: Consumer Gas Prices Are Lower Because Of Hydraulic Fracturing
According to IndustryWeek, a new study from the American Petroleum Institute (API) found hydraulic fracturing, or fracking, reduced U.S. petroleum prices by $0.29 to $0.94 per gallon in 2013. In all, API estimates U.S. consumers saved between $63 billion and $248 billion last year on gasoline and other refined petroleum because of fracking and saved $165 billion to $624 billion between 2008 and 2013. Fracking also reduced international oil prices by $12 to $40 per barrel, the study found.
To keep consumer prices low, federal policymakers must reevaluate their regulatory approach to fracking, API argues. Vice President for Regulatory and Economic Policy Kyle Isakower advised, “It’s important for policymakers to recognize that the U.S. energy revolution was not a lucky accident, but the result of decades of American innovation aimed at unlocking our resources here at home. To build that momentum and strengthen our position as an energy superpower, it’s critical that policymakers turn aside duplicative regulations on hydraulic fracturing and ensure that U.S. consumers can benefit from energy production on federal lands that remain off-limits.”