Why We Should Increase Domestic Production of Oil
While many people argue that oil production is environmentally destructive and not worth the risk, others point to the many benefits, not just for investors but for consumers and the overall economy, that come with developing a reliable domestic source oil. To learn more, you can talk to investment experts in the field of oil and gas production like Brian Hudnall. In the meantime, here are some of the key benefits of increasing domestic oil production.
A common argument in favor of increasing the domestic production of oil is to reduce dependency on foreign governments and markets. While some of our energy partners are very friendly, the fact is that dependence on other states is never a good idea when it comes to something as fundamental as energy. Anyone who lived through the oil crises of the 1970s will remember first-and how the economy ground to a standstill as a result of America’s lack of control over its own energy supplies. Other sources of energy, including renewables, must be developed at the same time to further reduce dependency.
Boosting the Economy Through Lower Prices
The larger the supply of oil is, the lower the prices will be. For consumers and producers there are benefits in the form of lower fuel costs. If the cost of production is reduced, then costs all down the line can also be reduced. In practical terms, this means that lower oil costs will also reduce the costs of other goods in the economy. Business runs on transportation whether in the air or on roads, and price of everything that needs to be moved from one place to another will be affected by basic transportation costs. Another benefit comes from relative stability in oil prices that comes from having a secure domestic source of oil that is not subject to the decisions of foreign leaders. This means that businesses and producers can count on reliable prices over a longer period, and can make investments that can contribute to overall economic growth. It also means that consumers can feel more confident making large purchases.
Expansion of oil exploration and recovery activity can create economic opportunities and jobs in remote areas. Those people will spend their wages in the local community which helps to spread the benefits of these jobs Job opportunities are available at all levels, from skilled to unskilled, so that the benefits are available to all members of the community. They also provide opportunities for upward mobility as a result of training and on the job experience. Spin-off jobs, especially in the service industry, are also created in the wider community as services expand to support increased people and activity. And the tax base of the community increases overall as jobs and wealth circulate throughout the local area. This is good for everyone.
Increasing the domestic production of oil definitely imposes a burden on the industry to be responsible and to work with authorities to develop and implement the highest standards of safety. Everyone benefits when this happens.