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Reed: Despite Turmoil Overseas, U.S. Oil Production Keeps Prices Stable

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Washington, DC, August 4, 2014 | comments

Tom Reed Monday highlighted the recent trend in oil price stability despite volatile conditions overseas due to increased oil production in the United States. Reed cited political tension, turmoil and violence in regions like Iraq, Libya, Russia and Israel – making national and energy security of even greater importance.

“Despite turmoil around the world, oil prices remain stable because of increased oil production here at home,” Reed said. “An all-of-the-above energy approach is what this country needs to protect consumers from what could otherwise be huge spikes in oil prices. We’re seeing record stability and reliability in oil prices even with the Middle East, for example, up in flames because we’re in greater control of the supply chain here at home.”

The Energy Information Administration (EIA) – the non-partisan research arm of the Department of Energy – confirms the oil markets remain stable because of the U.S. shale boom and increased production.

“When we control the supply chain, it benefits national security,” Reed continued. “When we don’t have to rely on these volatile countries and regions around the globe, our energy supply chain is not as disruptive, and we see lower oil prices as a result. The more diverse our domestic energy approach, the better we can care for consumers and protect them from a volatile world market.”

Stabilizing oil prices has a positive effect for American consumers on more than just gas prices.

“The all-of-the-above energy approach I support – including the production of oil and natural gas through hydraulic fracturing done safely – means families have more money in their pockets because they’re more likely to see lower prices filling up at the gas station, on their heating bill and even at the grocery store,” Reed said. “We need to continue this trend to continue strengthening our energy security that will lead to strengthened national security.”

Reed made reference to two recent articles in particular: Forbes’ “Amid Global Turmoil, Oil Prices Surprisingly Stable” and Politico’s “Turmoil Abroad Not Yielding Pain at the Pump – So Far” that highlight the importance of U.S. energy production on stable oil prices.

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Tags: Energy

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