The United States has been steadily producing more oil through the past decade. But what are the consequences of this increased oil production? Increased oil production is having many benefits not only for the United States but also for the world as a whole. Improved oil production is stabilizing the American economy, reducing reliance upon foreign nations, and even improving the environment.
More Oil Leads to a Better Economy
Lower oil and gas prices lead to a better economy overall. Transportation, shipping, and merchandise costs are all reduced when oil and gas prices are low. The more oil that is produced, the more likely it is that prices will stabilize at a lower rate. Though these lower rates may have temporarily reduced the amount of money being made within the oil and gas industry, the industry has been able to bounce back by increasing their own efficiency. In this way, the oil and gas industry and the economy can both improve upon their outlooks at the same time.
U.S. Exports Reduces Reliance Upon Foreign Nations
Historically, the United States has found itself reliant upon OPEC countries such as Saudi Arabia for cheap oil and gas. This has made the country vulnerable for more reasons than simply economic ones. Politically, the United States has had difficulties with these foreign nations because of the necessity of oil imports. This is no longer the case. The United States is no longer reliant upon foreign imports because it is now becoming a global exporter. Strategically, this gives the United States more power than ever on a global scale, while further reducing the impact that OPEC nations can have on foreign policy.
Improvements in Environmental Issues
Fracking in the United States has had a significant environmental impact. But unlike many believe, the environmental impact has actually been positive. This is for a variety of reasons. Fracking produces both crude oil and natural gas, both of which are far preferable to coal. Coal is used by many third-world countries and even areas within the United States for power production. The more oil and natural gas is produced via fracking, the less coal is used; the less coal is used, the better the outcome for the environment.
But that isn’t the only way in which oil is improving the environment. Removing oil from the environment is actually reducing oil seepage, which is chemically the same as an oil spill. Many do not realize that the environment can experience oil spills without human intervention and that these oil spills are at a significantly reduced risk if the oil reservoir pressure is alleviated through oil production.
Tiger General, LLC has been helping oil and gas companies grow and expand in the United States since 1925. By supporting companies seeking to produce more domestic oil, Tiger General, LLC has been proud to aid in the continued development of the domestic economy. For more information about the products and equipment provided by Tiger General, LLC, review their new and used equipment inventory now.