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Onshore Oil & Gas Production Saved Americans $1200 Each

Editorial Staff | PennEnergy
Sep 6, 2013

The average American household gained around $1,200 in disposable income last year thanks to the rising oil and natural gas production occurring in the United States, a new report from IHS states.

The natural gas boom has lowered gas and electric utility bills and led to lower prices of other goods and services, the research firm said. The oil and gas industry also created more jobs and higher wages.

The "unconventional revolution" in the United States contributed a total of $163 billion to American households in 2012 - an amount IHS expects will only increase in the future, The Wall Street Journal Reported. By 2020, it's estimated domestic oil and gas production will bring more than $2,700 of disposable income to every household in the U.S. That number could reach beyond $3,500 by 2025, according to the report.

Hydraulic fracturing and horizontal drilling have made oil and gas drilling more effective, leading to a 57 percent increase in U.S. natural gas reserves since 2007 and lowered the price of natural gas by almost three-fourths, USA Today reported.

More information on U.S. oil and gas production potential can be found at PennEnergy's research area.

Link to Report