Press Releases

Reed Says Domestic Energy Production is to Thank for Stable Oil Prices amid Global Instability

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Washington, DC, August 15, 2014 | comments

Tom Reed says the trend in the U.S. of oil prices is largely thanks to increased domestic energy production. Despite instability and unrest in many oil-rich parts of the world, oil prices remain stable as domestic production reaches new levels.

“The fighting and instability we’re seeing in places like Iraq, Ukraine, Gaza and Libya would have caused huge spikes in oil prices in the past, but thankfully we’re not seeing that now because of oil production here at home,” Reed said. “What we are seeing is the importance of an all-of-the-above approach to domestic energy production, including the production of oil and natural gas through hydraulic fracturing done safely.”

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. More domestic oil production is having impacts in other sectors of the economy and AAA is reporting the national average for a gallon of gas is 16 cents lower than last month and down 11 cents from the same time last year.

For Reed, the importance of an all-of-the-above energy approach is two-fold: it keeps prices in the U.S. lower and boost national security.  

“By increasing production here in the U.S., we’re better able to protect Americans from higher oil prices and just as importantly, we’re stronger as a nation,” Reed continued. “We’re more resilient when the world is dealing with politically-fueled violence when we are in control of our own supply. Our energy supply chain is protected and we see lower oil prices as a result.”

Studies and reports from around the country are coming to the same conclusion of the benefits of domestic energy production. Bloomberg’s World Awash in Oil Shields Markets from 2008 Price Shock, Forbes’ “Amid Global Turmoil, Oil Prices Surprisingly Stable” and Politico’s “Turmoil Abroad Not Yielding Pain at the Pump – So Far” are just some of the dozens of national pieces to highlight the importance of U.S. energy production.

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