U.S petroleum product prices were between $0.29 and $0.94 per gallon lower in 2013 than they would have been without hydraulic fracturing, according to a new study sponsored by the American Petroleum Institute.
Oil production in the U.S. from hydraulic fracturing, or fracking, increased from an estimated 0.75 million barrels per day in 2008 to nearly 4.78 million barrels daily by 2013. That represents 48% of U.S. production. ICF International, which conducted the study for API, estimated that because of this domestic production from fracking, international oil prices were from $12 to $40 per barrel lower in 2013 than they would have been without the U.S. oil production.
API said the reduction in oil product prices saved U.S. consumers an estimated $63 billion to $248 billion in 2013. Since 2008, API added, the estimated cumulative savings were between $165 billion and $624 billion.
“It’s important for policymakers to recognize that the U.S. energy revolution was not a lucky accident, but the result of decades of American innovation aimed at unlocking our resources here at home,” said Kyle Isakower, API’s vice president for regulatory and economic policy.
Isakower warned against “duplicative regulations” on hydraulic fracturing. He noted that the Bureau of Land Management is developing regulations for fracking on federal lands and those regulations could be used by EPA, which has a study on fracking underway, in future rulemaking. He added that there are 202 bills or rules in 34 states under consideration that would regulate fracking.
