Domestic oil, gas production gives economy lift

WASHINGTON – The explosion in U.S. production of oil and natural gas is giving Americans a little more jingle in the pocket.

A new study indicated that while they’re not getting rich, higher energy production in the states is boosting the bottom line to the tune of about $1,200 a month, according to the consulting firm IHS, USA TODAY reports. The company expects the new energy’s contribution to U.S. families’ disposable incomes will hit $2,000 per household per year by 2015.

More than a million jobs are currently supported by domestic energy production. Throughout the next seven years that’s expected to grow to more than 3 million.

New technologies like fracking and horizontal drilling are part of the reason for the economic changes. These methods have increased the natural gas reserves and cut the cost of natural gas by nearly three-fourths. Domestic oil production is up as well.

Perhaps one of the biggest impacts on Americans though is in the form of lower electricity and heating bills. Natural gas prices have fallen between 12 to 32 percent since 2008. And because of increased domestic oil production, there’s less being imported. This has shaved $31.6 billion from the national trade deficit.

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