Energy Changes Everything

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Energy Changes Everything

According to the U.S. Energy Information Administration, when President Obama was elected in 2008, U.S. oil production averaged 5 million barrels a day.1

In 2013, daily output averaged 7.4 million barrels. More importantly, it is expected to climb to 8.5 million this year and 9.3 million barrels a day in 2015.2 Meanwhile, natural gas production is up roughly 30 percent, driven by shale gas output that has risen about 600 percent.

Most of the recent growth in petroleum output has come from tight oil deposits in Texas and North Dakota. Those two states combined now produce more than 4 million barrels every day and supply almost half of America's total oil output.

Since 2010, oil production in Texas has risen almost three-fold, to more than 3 million barrels a day in April. In fact, Texas, by itself, could soon be the sixth-largest oil producer in the world.

U.S. dependence on imported petroleum products has fallen from more than 60 percent in 2005 to less than 33 percent in 2013. It's expected to drop to 22 percent in 2015, which would bring reliance on imported oil to its lowest level since 1970.3

It's worth noting that the dramatic 35 percent increase in America's oil and natural gas production since President Obama took office has happened in spite of administration policies; in fact, those policies have slowed development off-shore and on government lands while bottle-necking pipe line approval.

Production and its associated economic impact could have been even greater if the administration had embraced America's new "energy superpower" status instead of being hostile to the development of our fossil fuel resources.

In short, neglecting America's new abundance of hydrocarbon resources and limiting development on federal lands, the Federal government has prevented the country from reaching its full economic potential.

The Trends editors believe that, even now, the United States is squandering millions of jobs that could be created from expanded energy production and the resulting revitalization of U.S. manufacturing.

Just consider what is already happening under less than ideal conditions.

The energy boom is having a dramatic effect on the economies of the population centers that support the oil and gas business.

According to the 2014 North American Energy Outlook from real estate management firm Jones Lang LaSalle, America's energy-rich regions are forecast to receive an average of $80 billion in annual investments over the next six years and will undergo a rapid population expansion...

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