U.S. Oil Boom Fails to Help Small Businesses at the Pump

US Oil Production is Up; Small Producers Feeling Pinched

U.S. oil production continues to break records this year, and the latest federal data shows crude output hit 11 million barrels a day in the previous week, with U.S. oil production doubling in the last eight years.

US Oil Production

American Enterprise Institute economist Mark Perry noted the production milestone on Twitter, citing the latest U.S. Energy Information Administration (EIA) data.

Here’s confirmation from EIA:

US Oil Production is Up; Small Producers Feeling Pinched

Source: U.S. Energy Information Administration

U.S. oil producers continue to reach new milestones, including breaking the all-time record of 10.04 million barrels per day set in November 1970. Oil and natural gas exports have also set new records.

While U.S. production has boomed, it’s not been enough to keep gasoline prices from ticking up this year. Gas prices increased on rising demand, supply troubles in Venezuela and Libya and new sanctions on Iran.

Hydraulic fracturing, or fracking, has allowed companies to access vast reserves of oil and natural gas, precipitating an energy boom that’s completely reversed the U.S.’s energy future.  The Trump administration has harnessed “energy dominance” as part of its foreign and domestic policies. The White House has aggressively pushed a deregulation agenda that’s targeted Obama-era regulations seen as harmful to energy production.

EIA expects U.S. production to increase to 12 million barrels a day by the end of 2019.

Photo via Shutterstock

This article, “U.S. Oil Boom Fails to Help Small Businesses at the Pump” was first published on Small Business Trends