The People of America's Oil and Natural Gas Indusry

Energy is Redrawing U.S. Trade Picture

Mary Leshper

Mary Schaper
Posted February 6, 2015

Oil Boom a ‘Game-Changer’ on Trade Deficit

 

Wall Street Journal: The U.S. oil boom is redrawing America’s trade picture.

 

Petroleum imports accounted for less than 20% of the nation’s trade deficit last year, down from more than 40% only five years earlier, according to figures for 2014 released Thursday.

But the overall U.S. appetite for overseas goods didn’t diminish over the period, which started with the global economy’s first full year of expansion after the 2007-09 recession. Imports of just about everything else have surged as Americans substitute other goods for foreign oil, leaving a growing trade deficit.

“If we hadn’t had this oil boom I think our deficit would be lot larger than it is right now,” said IHS Global Insight economist Patrick Newport. “It’s a game-changer.”

Read more: http://on.wsj.com/1zWdbXt

 

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ABOUT THE AUTHOR

Mary Schaper is a Digital Communications Manager for the American Petroleum Institute. She previously worked on Capitol Hill for the Senate Energy and Natural Resources Committee as Digital Director and for Senator Lisa Murkowski. Before coming to D.C., she spearheaded digital strategy for Murkowski's successful Senate write-in campaign in 2010. Schaper enjoys traveling and taking in the local culture alongside her husband, their son and loyal springer spaniel.