Everyday Americans across the country are benefiting from low-cost energy with the average price for a gallon of gasoline hovering around $1.75 and natural gas prices falling to historic lows. In fact, data collected by the U.S. Bureau of Economic Analysis shows that households are spending less today on energy goods and services than almost any point in recent history.
In January, energy expenditures fell to less than 4 percent of total consumer spending, a sharp drop from only a few years ago. Consumers don’t just feel the effect of cheap energy at the gas station, the decrease in prices also translates to falling prices for consumer goods and services.
Falling energy costs are a direct result of the ‘Energy Revolution’ currently playing out across the country. Surging domestic production in areas like North Dakota’s Bakken/Three Forks region have push the United States to become one of the largest oil and gas producers in the world, and more importantly, closer to becoming energy independent.
America is still adapting to its new-found role as an energy leader and major investments must still be made to accommodate increased domestic production. Expanding our nation’s pipeline infrastructure is perhaps the most critical of these investments. Current pipeline infrastructure lacks the capacity to handle new market dynamics and is limiting producers who are unable to ship product to market.
A new era of affordable energy has already begun, but certain steps must be taken now to ensure these benefits are here to stay. Projects like the Dakota Access Pipeline are essential to sustaining low prices and adequate supply.