How Much Has Shale Gas Saved U.S. Consumers?
The article discusses the significant impact of shale gas on U.S. consumers. It highlights that U.S. natural gas production surged due to advancements in drilling technology, transforming the country from a net importer to the largest exporter. The savings for consumers from 2007 to 2025 are estimated to be between $3.1 and $4.3 trillion.
- ▪U.S. natural gas production was stagnant in the mid-2000s, leading to increased imports.
- ▪Advancements in hydraulic fracturing and horizontal drilling led to a surge in production.
- ▪U.S. consumers saved between $3.1 and $4.3 trillion from 2007 to 2025 due to lower natural gas prices.
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How Much Has Shale Gas Saved U.S. Consumers? by Tyler Cowen May 29, 2026 at 12:46 am in Data Source Economics It may seem like a distant memory now, but as of the mid-2000s, U.S. natural gas production had been flat for a decade, and the U.S. was importing liquefied natural gas (LNG), with plans to import much more. Then shale gas happened. Advances in hydraulic fracturing and horizontal drilling caused U.S. natural gas production to increase significantly, and the U.S. went from being a net importer of natural gas to being the world’s largest exporter. This paper calculates how much shale gas has saved U.S. natural gas consumers. Using price differences between the United States, Europe and Japan, we calculate that U.S.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Marginal Revolution.
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