Shale boom contributed one percent of US GDP growth?
The shale boom that led to cheaper fuel prices, increased consumer spending and less crude oil imports may have had a significant positive effect on the U.S. economy, researchers with the Federal Reserve system found.This all happened after Obama falsely stated that we could not drill our way out of the oil shortage. He was dead wrong about that as well as other economic issues like the return of manufacturing jobs. Trump has shown much more insight on these issues and is not blindered about bitterly clinging to liberal ideas about the production of oil and gas. It is more evidence of how Obama policies were bad for the economy. Democrat candidates now are still wrong about oil and gas production and would harm the US economy with their control-freak policies.
In a working paper published by the Federal Reserve Bank of Dallas, researchers Nida Melek, Michael Plante and Mine Yücel estimate that although the oil and gas sector represents less than 1.5 percent of the U.S. economy, the increase in light oil production may have boosted U.S. GDP by 1 percent in 2015 compared to 2010. The U.S.'s GDP increased by 10.8 percent from 2010 to 2015.
"The effect of the shale boom is significant, at about one-tenth of growth," researchers wrote.
The use of horizontal drilling and hydraulic fracking beginning in the mid-2000s sparked an explosion in oil production in the U.S. Since 2010, U.S. oil production has more than doubled from 7 million barrels per day to over 12 million barrels per day in 2019. Texas' produces the lion's share of crude oil output in the U.S., and production in the state jumped from 1.1 million barrels per day in 2010 to 5 million barrels per day in 2019.
Before the shale boom, the U.S. imported twice the oil than it produced. As a result of the shale boom, the petroleum trade imbalance shrunk by $356 billion between 2005 and 2018.