Thank frack for that

What has shale ever done for us? Well, quite a lot already actually, including reducing our cost of living.

 

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Shale gas opponents are constantly questioning the benefits, so we thought we'd take a quick look at how we have already felt the benefits in the UK before fracking even starts here.

The US boom in shale oil production (which is allied to shale gas by virtue of the fact that it's the same source rock and uses the same combination of horizontal drilling and fracking) has helped America break the strangle-hold on world oil prices that the OPEC cartel has enjoyed since the 1970's.

In response to the US producing so much of its own oil, and being less dependent on OPEC nations for theirs, Saudi Arabia and others all starting pumping more oil - flooding markets and driving down prices in the hope that they could make US shale oil so unprofitable that they'd give up

Instead, the US drillers just innovated and found ways to keep pumping oil at a profit, even when the dollar price of a barrel had fallen precipitously.

The net effect: with oil prices at record lows, petrol and diesel prices at the pump have fallen, including here in the UK. 

That means that every time you've filled-up your car, you've saved money. 

It's also made transporting food and other goods we rely on cheaper. 

Together, these have helped reduce inflation and raise living standards.

Fracking did that for you. 

So, next time someone says that fracking won't lower fuel bills for us, you can tell them it already has.


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  • Dale Green
    The low fuel prices were a big help through the recession. Petrol falling below £1/litre especially. I don’t know what I’d have done without that. The fact that the anti fracking groups want a global ban on something that has transferred trillions (with a chunk of this being pounds for us) of dollars back to the West just shows how insane they are. The fact that they argue against this while claiming that fracking won’t lower prices when they want a global ban on it while at the same time it lowered fuel prices by more than 30% is duplicitous and doubly insane.