Thursday, March 12, 2015
Can the Shale Industry Jumpstart Economic Growth?
With oil and gas production at an all-time high in the United States, many people are wondering if low oil prices will burst a hole in the bubble. The prolonged decline in oil prices has left many economists in fear as to whether or not the shale revolution can continue to carry the economy. Temporary or Long Term Growth Contrary to popular belief, the shale revolution is not a temporary trend. It is a revolution that is still in the beginning stages. When economists projected that the annual GDP would be boosted by $380 billion to $690 billion by 2020, they did not expect for domestic oil and gas production to be so high. Thanks to hydraulic fracturing, the United States is expected to hit the high end of that projection. Although continued low oil prices could to impede growth, many large producers of shale oil and gas will continue to make profits. According to the United States EIA (Energy Information Administration), shale oil and gas production has grown by 51 percent each year