Thanks to America’s ongoing energy revolution, oil isn’t the only source of energy that’s selling at bottom-of-the-barrel prices.
Natural gas is too ‚Äì and it’s saving consumers some big bucks.
A recent study by IHS Economic, commissioned by the National Association of Manufacturers, says that record-sized increases in U.S. shale gas production and its accompanying lower natural gas prices in 2015 contributed $156 billion to real disposable income — which means the average American family had an extra $1,337 in disposable income.
This study comes on the heels of another analysis, from the Energy Information Administration, which said that fracking improved the average cost of living for most Americans by nearly $750 per year since 2008.
These are the fruits of the U.S. energy revolution. Increased production has led to reduced fuel costs and lower utility bills, which, of course, lead to big savings — for everyone, especially low-income families who spend a larger percentage of their disposable income on electricity, heating costs and transportation fuels than those in other income brackets.
“Going forward, lower natural gas prices will result in benefits to consumer purchasing power and confidence, higher profits among businesses and improvements in cost-competitiveness for domestic manufacturers relative to their international competitors,” the report says.
There’s really no better way to illustrate how Americans benefit from producing more energy here at home than this.
But there’s a catch.
With manufacturing and power generation serving as key drivers, total natural gas demand is poised to increase 40 percent over the next decade. U.S. supply, meanwhile, is expected to swell about 48 percent over the next decade to meet this new demand.