We will save the political commentary till later but this is very big…
Some stats:
US net oil imports have fallen from 60% in 2005 to 42% today with domestic production up 25% in the last 4 years. Much more domestic production coming on line this year.
While it would be only fair to note some of the decrease in consumption is due to a lagging economy, it is down even more from more efficient use. Higher MPG cars and more efficient uses from industry.
Tight Oil from Hydrological Fracturing is coming online and more important, natural gas. Many fleets are converting to natural gas to power their cars and trucks and even diesel trucks because of the abundant and cheap Nat Gas supplies. This will soon offset oil consumption even more.
For the economy:
Presently we only see job growth in the extraction industry and would include steel for pipelines and soon facilities to refine some “wet gas” products also being extracted.
This will change the competitiveness of the steel industry as having a cheap supply of energy to make steel changes prices and profit margins for the industry.
The same will be true for the plastics industry as derivatives from wet gas are key components in manufacturing.
Wind energy production has doubled which adds to coal and gas supply stockpiles that help even more to keep prices down. If that can be doubled yet again in the near future, it would add to the job market in a meaningful and highly noticeable way.
Once most of the above comes online, it’s just hard to say how many additional jobs get created in subsequent industries but it is sure to have a very major impact on jobs.
For National Security:
Having jobs and a ability to make your own military hardware goes without saying but, to not have to engage in conflicts in other parts of the world to insure the free flow of oil is a cost savings the taxpayer will probably never fully appreciate. Since the US military is the worlds largest consumer of oil, it is extremely nice to know we can make it here and get the job done without fear of killing our own economy from a shortage it creates in wartime.
Political ramifications:
I think that Romney’s Energy plan has all these growth numbers in it as if he would create what is being created with or without him. The bigger idea here is that he would deregulate the industry that is expanding just fine without intervention and without removing consumer protections or taxes.
What I can not figure out is why Obama has not spoke of this great success. It could be he is afraid of the environmental side of the democratic party but some acknowledgment needs to be said with the idea the future is not so bleak.