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Energy Expert Yergin: Surge of US Oil and Gas Production Is a Boon to Economy

By    |   Wednesday, 24 Oct 2012 08:17 AM

The explosion in domestic production of oil and gas represents a huge shot in the arm for the U.S. economy, says renowned oil scholar Daniel Yergin, vice chairman of IHS research.

“An unconventional oil and gas revolution is under way in the United States,” he writes in The Wall Street Journal. New drilling techniques, such as hydraulic fracturing, have enabled a huge increase in production.

“Shale gas alone is now 10 percent of the overall U.S. energy supply,” Yergin says. “And similar technologies to recover oil trapped in rock formations are largely responsible for boosting U.S. oil production by 25 percent since 2008.”

Editor's Note: Economist Warns: 50% Unemployment, 100% Inflation Possible

This revolution has generated 1.7 million jobs — from people working on rigs, to people making equipment, to people providing information technology services to the oil and gas industry, he writes. And the job total could reach 3 million by 2020.

The production bonanza also takes a bite out of our current account deficit, as the increased output will trim U.S. oil imports by about $75 billion this year, Yergin estimates.

Don’t expect the situation to change, regardless of who is elected president. Both President Barack Obama and Republican challenger Mitt Romney are well-attuned to the production boom’s benefits.

“I think on oil and gas production, pipelines, and natural gas exports, the differences between the two are marginal,” David Goldwyn, former State Department energy coordinator for Obama, tells The New York Times.

Editor's Note: Economist Warns: 50% Unemployment, 100% Inflation Possible

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The explosion in domestic production of oil and gas represents a huge shot in the arm for the U.S. economy, says renowned oil scholar Daniel Yergin, vice chairman of IHS research.
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2012-17-24
Wednesday, 24 Oct 2012 08:17 AM
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