The People of America's Oil and Natural Gas Indusry

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Mark Green

Mark Green
Posted December 29, 2014

Enjoying Your Cheap Gas? Thank Fracking

The Week: One of the biggest stories of 2014 has been the astonishing drop in global oil prices. The price of the benchmark Brent crude went from over $100 per barrel at the beginning of the year to the $60 range as of this writing.

It's worth noting how massive and completely unexpected this price drop has been.

And it's worth noting how good it is for the U.S. economy. The price of oil is one of the biggest drags on consumer demand, the largest driver of the economy.

And to what do we owe this miraculous event?

In a word: fracking.

Fracking has allowed the U.S. to extract a lot more oil from the ground, but also a lot more natural gas. As natural gas replaces oil as a power source, the demand for oil falls, which, all else being equal, lowers prices.

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Mark Green joined API after a career in newspaper journalism, including 16 years as national editorial writer for The Oklahoman in the paper’s Washington bureau. Mark also was a reporter, copy editor and sports editor. He earned his journalism degree from the University of Oklahoma and master’s in journalism and public affairs from American University. He and his wife Pamela live in Occoquan, Va., where they enjoy their four grandchildren.