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2015-05-24 20:00:00

U.S. GEOPOLITICAL TURMOIL

U.S. GEOPOLITICAL TURMOIL

Memorial Day travelers and the businesses that cater to them are reaping the benefits of increased U.S. oil and natural gas production, said API Chief Economist John Felmy.

"As we head into the Memorial Day weekend, motorists are getting some welcome relief at the pump," said Felmy on a press conference call today. "Thanks to hydraulic fracturing and horizontal drilling, the U.S. is experiencing a renaissance in domestic oil and natural gas production. The benefits for U.S. consumers – as well as manufacturers, the travel and tourism industry and frankly our entire economy – are hard to overstate."

The national average price of gasoline is about $1 per gallon less than it was at this time last year, according to AAA.

"Government policymakers should not take these things for granted," said Felmy. "In order to maintain a robust supply of domestic oil, it is essential that the industry be allowed to affordably and predictably explore for and develop new resources.

"That means companies must be able to lease acreage and obtain permits in a timely fashion. It also means the federal and state governments should avoid punitive tax regimes that would cause energy companies to look elsewhere for the best opportunities.

"Geopolitical turmoil that takes foreign oil supplies offline can be difficult to predict or control, but the U.S. will always have control over how much energy we produce here at home. With the right policies, our energy renaissance can endure for decades and help even more families afford to take a vacation on Memorial Day weekend."

API represents all segments of America's oil and natural gas industry. Its more than 625 members produce, process, and distribute most of the nation's energy. The industry also supports 9.8 million U.S. jobs and 8 percent of the U.S. economy.

api.org

Tags: U.S., OIL, GAS, PRICE

Chronicle:

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