Improving economy due to Oil & Gas production… the White House agrees.

Oct 18, 13 Improving economy due to Oil & Gas production… the White House agrees.

President Obama established a national goal in 2011 to reduce oil imports by one third by 2020 and elevated the goal in 2012 to reduce them by one half by 2020. We are currently on track to meet this goal. Increasing domestic production of oil is having positive effects on economic growth, including more jobs. Government funded research supplemented by the private industry has worked to develop the technology that sparked the boom in oil and gas production. Crude oil production has grown each year to its highest level in 17 years in 2012. Over the past four years, domestic oil supply growth has accounted for over one-third of global oil production growth. In 2012 net petroleum imports had fallen by one-third since 2008, to the lowest level in 20 years.  And imports are continuing to fall this year as well.  We will shortly be at the point where domestic crude oil production exceeds imports on a sustained basis for the first time since the early 1990s. The increased domestic supply, combined with increased oil efficiency of the economy should reduce our vulnerability to global supply disruption, foreign political discourse and price shocks, with the added benefit of enhancing our national security. But among its greatest effects are economic…with more jobs and a lower trade deficit at the forefront.

On the other side of the coin, some economists feel that some of the White House policies may have a negative effect on the oil production industry’s rapid growth. Proposals to minimize  tax deductions for the oil industry and the Energy Department’s slow process of examining proposals to export LNG, (liquefied natural gas), could have a possible negative impact on the greater goal of reducing foreign oil imports.

We at PAOGR believe, that In the end, the main objective is to reduce foreign oil & gas imports and increase  job demand. Based on future estimates, the improvement rate of both continues to look promising.