Much of America’s energy boom during Trump’s tenure can be attributed to his stated strategy of “energy dominance.” The White House’s Council of Economic Advisors (CEA) 2020 report found that in 2017 the United States became a net exporter of natural gas. It was a feat not seen since 1958. Further amplifying Trump’s success in boosting America’s energy boom, the United States became a net exporter of crude oil and petroleum products and will likely remain a net exporter for all of 2020 for the first time since 1949.
The CEA contended that the country’s growth and dominance in the fossil fuel sector has boosted the economy and has fortified national security. “The innovation-driven surge in production and exports has made the U.S. economy more resilient to global price spikes. It has also improved the country’s geopolitical flexibility and influence, as evidenced by concurrent sanctions on two major oil-producing countries, Iran and Venezuela,” the CEA report said.
The U.S. Energy Information Administration (EIA) forecasted in January 2020 that American natural gas exports will almost double by 2021 to an average of 7.3 billion cubic feet per day. The EIA said that the growth in U.S. net exports has been led primarily by increases in liquified natural gas (LNG) and pipeline exports to Mexico. The federal energy agency also noted that in 2019 “growth in demand for U.S. natural gas exports exceeded growth in natural gas consumption in the U.S. electric power sector.” The explosion in natural gas has lowered American energy prices, leaving more Americans with more money to save and invest in their future.
The CEA found that the shale revolution in natural gas has saved American consumers $203 billion every year, which amounts to an average of $2,500 in savings for a family of four. “Nearly 80 percent of the savings stem from a substantially lower price for natural gas, of which more than half comes through lower electricity prices,” the CEA said.
The economic adviser group also noted that the reduction in energy prices has especially helped America’s lower-income families. “Because lower-income households spend a larger share of their income on energy bills, the savings have greater relative importance for them,” the Council of Economic Advisers wrote. “Energy savings represent 6.8 percent of income for the lowest fifth of households, compared with 1.3 percent for the highest fifth. In other words, lower energy prices are like a progressive tax cut that helps the lowest households the most.”…
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