For the past several weeks, falling oil prices and a likely veto of the Keystone XL pipeline by President Barack Obama have been commanding the headlines. But something more significant has been lost in the commotion. Last year, the United States produced more oil and natural gas than any other country, allowing us to achieve virtual energy independence which has been an expressed goal of public policy since the 1970s. What’s more, American consumers are reaping a fiscal windfall as lower energy prices reduce the costs driving their cars and heating and powering their homes. Most American industries are benefiting as well, especially energy-intensive manufacturing companies that use oil and gas both as fuels and feed stocks.
Author: Bud Weinstein
Thanks mainly to the shale revolution, oil production in the U.S. hit a 28-year high last month while imports were at their lowest levels since 1995. Consequently, prices have fallen 15% since June, and Saudi Arabia has cut production by 400,000 barrels a day — providing further evidence that OPEC no longer has the power to set prices.
Mr. Chairman and Members of the Committee, my name is Bernard Weinstein and I am the Associate Director of the Maguire Energy Institute at Southern Methodist University (SMU) and an adjunct professor of business economics at SMU’s Cox School of Business. Thank you for this opportunity to speak to you today.
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