Report Indicates that Shale Oil Boom is Significantly Improving U.S. Economy

By on May 29, 2013. Posted in , , . Tagged as , , .

The big news in the US is the boom in shale oil, especially in Texas. Image: Flickr

Report Indicates that Shale Oil Boom is Significantly Improving U.S. Economy

A recent report from financial services company Standard and Poor’s indicates that the shale oil boom is becoming an increasingly important factor in the nation’s economic growth.

The U.S. is currently struggling hard to recover from the recession. An article published in the International Business Times points out that some experts believe that the country is still in a slump.

This demonstrates that there is a long way to go before America can regain its financial health.

According to Standard and Poor’s, industries that sell into the energy sector are witnessing sales growth. Oil investing is likely to play a major part in the nation’s healing process.

Stock Market Boom

The oil industry has a huge effect upon the stock market, as it impacts upon a large number of other industries.

The U.S. is undergoing a stock market boom. It is likely that this is another area that the oil boom has contributed to.

Energy Independence

A Standard and Poor’s report states that America will gain energy independence by 2017.

Ever since the OPEC Oil Embargo of 1973-1974, during which the U.S. was briefly forced to ration gas, energy independence has been one of the nation’s major long-term goals.

When independence is achieved, it will make America less reliant upon unstable, oil-producing regions and improve the country’s global standing.

The idea that the U.S. will achieve energy independence in the near future was once believe to be a pipe dream. Now it is looking set to be a reality.

Industry analysts have predicted that energy efficiency will revitalize the economy. It will have a dramatic effect upon both the wealth of the nation and the power that it wields.

Natural Gas

According to Standard and Poor’s report, cheaper natural gas has also had a significant positive effect upon the U.S.

The natural gas boom has already led to the creation of 600,000 jobs. This figure is likely to reach 1.6 million by 2025.

In addition to this, cheaper natural gas has aided the recovery of the manufacturing sector, providing it with an edge over overseas rivals.

Throughout the next two decades, America’s natural gas prices are predicted to be amongst the lowest in the industrialized world.

The price of this commodity in Asia and Europe is already triple to quadruple its price in the U.S.

Recession Busting

What does all this mean for America? It means that gas and oil investing is making the nation richer, stronger and less dependent upon foreign sources of energy.

The oil boom, meaning that it is aiding the nation in uncertain times, has boosted man industries.

The boom is pumping money into the country both directly and via support industries, royalty payments to landowners and increased tax revenues.

It is providing the help that America needs to get back on its feet.

The country is slowly picking itself up again after a period of significant economic downturn. It is looking as if oil investing will be an essential part of its recovery process.

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