Shale Oil Boom Pushes US GDP To 5% in 3rd Qtr

[Anonymous]

The shale energy boom has given the US cheaper energy than their European counterparts and the last qtr the US economy grew at 5%. It is leading to a revival in petrochemical manufacturing as well as giving the US a competitive advantage over European countries that have said no to things like fracking. .Let's just hope the EPA along with an activist Dem congress or prez doesn't fuck it up.



Go unconventional oil and gas!!! ac_dance

Will the U.S. shale boom turn out to be a bust? The recent decline in oil prices has left some questioning whether it can be sustained.



But the shale revolution is not just a temporary blip. It's a true game changer for the U.S. economy, and its impact is only in the early stages. A year ago, we projected that shale energy could boost annual GDP by 2 to 4 percent ($380 billion to $690 billion) by 2020. Since then, development has continued in high gear, putting the United States on track to hit the upper end of that forecast. Further declines in oil prices could dampen this growth, of course, but the most productive basins for shale oil and gas will remain profitable even if oil prices remain at today's levels.



Consider the numbers:



Shale gas production has grown 51 percent per year since 2007, and proved reserves have increased five-fold since then, according to the U.S. Energy Information Administration (EIA). The United States is now the world's largest natural gas producer, thanks to shale.

Oil production from shale deposits (or "tight oil") is growing even faster. The United States has gone from averaging 5 million barrels per day of total crude oil production in 2008 to 8.7 million barrels per day in September 2014—and the EIA now projects it will top 9.5 million barrels per day in 2015. This level hasn't been achieved since 1970, and shale production accounts for the lion's share of the increase.

Technological innovation is paying off as wells become more efficient. Rig counts have been flat or falling in the Bakken and Eagle Ford formations in the past couple of years, but yields continue to climb. The combined oil production of these plays has grown from 225,000 barrels per day in 2007 to more than 2.5 million barrels per day.

Shale boom felt beyond the energy sector





It's hard to overstate the impact on the U.S. economy. The oil and gas industry added more than 135,000 high-paying jobs from 2007 to 2012, and the boom is being felt well beyond the energy sector. A massive $1.4 trillion build-out of pipelines, rail networks, and drilling and gathering infrastructure, financed mainly by private capital, could generate 1.6 million jobs.

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