Dan Steffens, president of the Energy Prospectus Group, recently explained that without the shale boom, gas prices could easily be at least $6 a gallon, the Daily Signal reported.
One of the biggest reasons why energy experts believe gas prices could be higher is because of other nations' political turmoil situations at the moment. In Iraq, the overpowering ISIS terrorist group has claimed regions with some of the country's largest oil fields. Additionally, Russia's increasing tensions with the Ukraine have gas prices being affected for several European nations.
U.S. output dramatically different from a decade ago
Not even 10 years ago, the U.S. was only able to produce 69 percent of its energy needs and relied heavily on foreign markets for oil and gas resources, the Energy Information Administration reported. However, as the nation has moved closer to energy independence, the foreign incidents do not affect U.S. oil and gas prices as much as they would have without the energy revolution.
“With what's going on the Middle East, I think it would be five or six bucks [a gallon],” said Steffens, according to the Daily Signal. “If it wasn't for the shale revolution, you'd be in big trouble.”
Breakthroughs in shale drilling have created a new revolution of energy exploration in U.S. formations such as the Eagle Ford and Permian Basin in Texas, and the Bakken in North Dakota, the source reported. The production has increased so quickly the International Energy Agency recently reported the U.S. exceeded Russia and Saudi Arabia in oil production.
Bernard Weinstein, the associate director at the Maguire Energy Institute at Southern Methodist University, said the U.S. had a 60 percent growth in oil production within the last six years, the Daily Signal reported.
Joseph Dancy, an investment partner at LSGI Advisors Inc., said that exports of refined products are seeing their highest levels in almost 30 years as well, the New Mexico Watchdog reported.
“If we didn't have the oil industry and oil and drill activity, the economy would be much, much slower,” Dancy added, according to the source.
Shale plays have a global impact
Steffens told the Daily Signal that with the violence going on in Syria, Iraq and Libya, as well as the political issues in Nigeria and Venezuela, oil prices could have reached $150 per barrel this summer. However, hydraulic fracturing has given the nation such a massive amount of resources that U.S. crude was marked at $104 a barrel on July 7.
“There's no question that this newfound abundance of oil from shale plays is having a significant impact on the global market,” said Weinstein, according to the Daily Signal. “While the situation in Iraq seems to be getting worse, oil prices have actually fallen (in some sectors) because the markets now understand that Iraq could go totally off the market and there's still plenty of oil going around, not just here in the United States. The world is swimming in oil right now.”
Many energy experts believe the oil and gas figures are phenomenal right now even with a heavily democratic President Obama in the Whitehouse. According to the source, Dancy said it's crazy how the energy boom is helping the economy while a president is in office that doesn't fully support the oil and gas sector.
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