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The Importance of Oil and Gas In Today’s Economy

The oil and gas industry has both a direct and indirect impact on the domestic economy, with oil and gas prices directly affecting the health of the economy as a whole. Oil and gas is incredibly important not only to individuals and businesses within the United States, but also to the position of the United States among other countries across the globe. In order to protect the United States economy, the oil and gas industry will need to thrive.

Oil is the Major Energy Source Throughout the World

Oil and natural gas combined provide over half of the world’s energy. Oil and natural gas are necessary resources. A lack of oil and natural gas would have the country (and the world) grinding to a halt. Though there have been “renewable” and “sustainable” energy initiatives, none of them have been able to contribute a significant amount of energy to the world. They have either been prohibitively expensive, difficult, or simply unreliable. Oil and natural gas runs the world, and without it many countries would not be able to sustain their daily operations. This includes the United States.

Domestic Oil and Gas Production is Required for Energy Independence

Without the production of oil and natural gas in the United States, the United States would quickly become dependent on foreign supply. And once that occurred, the domestic economy would  be controlled directly through the price of oil and gas exports. This has historically been the case before hydraulic fracturing led to the country’s energy independence. Oil has been largely controlled by OPEC, a conglomerate of oil-producing countries that have collaborated to “price fix” the oil industry for some time. The energy industry has been disrupted via shale oil through fracking, thereby stripping OPEC of much of its power over the US economy.

Cheap Oil and Gas Prices Improve the United States Economy

The oil and gas industry has improved the economic outlook for the United States in two major ways. The health of the oil and gas industry has allowed the United States to begin exporting crude oil and natural gas rather than importing it, creating an energy market that will bring money into the country rather than sending money out of the country. This is critical, as many other industries (such as manufacturing) have been moving out of the United States. Equally importantly, the oil and gas industry has been able to achieve profitable margins without significantly increasing the cost of oil and natural gas. This is very important because it leads to lower gasoline and energy costs for the average American. When Americans spend less on utilities and gasoline, they begin to spend more at their local businesses. Lower gas and utility prices mean cheaper goods, cheaper shipping, and cheaper transportation altogether. The health of the American economy has always been directly associated with low gas prices.

The future of the United States is extremely dependent on the strength and health of the oil and gas industry. Luckily, the oil and gas industry has been expanding for some time. With further investments in pipelines and drilling, the United States will  be poised to become a major exporter of oil and natural gas. Meanwhile, companies such as Tiger General, LLC will be able to provide the rock solid oil field equipment that is necessary for the market to grow and expand without unnecessary costs. Tiger General, LLC has a wide inventory of new, used, and reconditioned oil field equipment, which you can browse online today.