As the winter months approach, Americans will experience firsthand the benefits of domestically-produced natural gas. As the primary source of heating energy for many states, particularly in the northeast, it is easy to see (and feel) how AXPC members are providing for communities across the country. Natural gas’ unique ability to serve as a reliable heat source, along with its affordability, was recently highlighted in a new report by the White House Council of Economic Advisers.
From home energy savings to lower prices at the pump, American consumers have enjoyed nearly $203 billion in savings annually, thanks to the increased domestic production of natural gas from American energy producers like our members. In addition to plentiful supplies of oil and natural gas, the shale revolution delivered huge gains in efficiency and innovation to American energy producers. From 2007 to 2019, U.S. producers were able to increase productivity of natural gas extraction by nearly eight times, and increase the productivity of oil extraction by nineteen times. This allowed the U.S. to emerge as the world’s leading producer of both oil and natural gas. This increase in production reflects an equally impressive drop in U.S. natural gas electric power prices, which fell nearly 40 percent within that time frame.
The savings for American consumers are expected to continue. Last month, the U.S. Department of Energy’s Energy Information Administration said it expects that American households who heat their homes with natural gas, heating oil and propane will save up to 16 percent on their heating bills this winter. These savings are on top of the average $874 per year in savings for homes that use natural gas for cooking and heating, bringing the total savings of the shale revolution to nearly $2,500 per family.
In producing natural gas, AXPC members are not only contributing to a reduction in household energy costs, they are also reducing greenhouse gas emissions in the United States. From 2005 to 2017, the increased use of natural gas in the energy sector contributed to a reduction of nearly 527 million metric tons of emissions per year, as natural gas emits 55 percent less carbon dioxide than coal.
The shale revolution is still positively impacting American families, especially during the cold months of winter. AXPC members are helping consumers across the country save money on their heating bills while reducing their impact on the environment. As domestic oil and gas production continues to increase, these economic and environmental benefits will continue to benefit to American households for years to come.