Surging domestic oil and gas production has greatly reshaped the global energy market both at home and aboard. Here are three ways American energy independence helping to save you money this summer.
Gas Prices: Gas prices in the U.S. are at their lowest point in more than a decade, down 20 percent in just the past year and in stark contrast to the near $4 average experienced during the 2011 crisis in Libya. According to AAA, the national average retail price for a gallon of regular unleaded gasoline fell to just $2.22 last week. Furthermore, the national motor group said that about a quarter of gas stations are posting prices below the $2 mark. Drivers across the country are saving big thanks to these low prices with CNN Money reporting earlier this year that low the typical American household upwards of $1,000 in 2016.
Groceries: Food prices are still rising over all, but low energy costs are leading them to climb at rates well below the historical average. A report by the U.S. Department of Agriculture found that prices for food at home increased by 1.2 percent in 2015, less than half the 20-year average of 2.5 percent. Delivering food to supermarket shelves requires a vest transportation network across land, air, and sea. Whether it be an airplane, 18 wheeler, ocean-going freighter, they all benefit from cheap oil.
Airfare: Fuel is the single greatest expense facing the airline industry, but thanks in part to American energy production, those costs have been greatly reduced. Cheaper operating costs for airlines translates into increased savings for consumers at the ticket counter. A recent analysis by Hopper, an award-winning mobile flight-booking app, found that the fall in oil prices is “contributing to noticeably lower travel costs.”