Fracking is apparently saving the average American a lot of money on energy, according to a new report from the Energy Information Administration (EIA).
The new report suggests that cheap energy offered by hydraulic fracturing, otherwise known as fracking, has reduced the annual cost of living for the average American by about $750.
Because the price of oil and natural gas declined by 71 percent and 56 percent, respectively, because of fracking, the average United States household has saved $747.30 per year since 2008. In 2015, energy prices fell 41 percent because of fracking.
Ostensibly, the report says, the drop in energy prices has allowed smaller increases in expensive items, including food and housing, though price inflation still remains rampant in these areas.
So, who is really benefiting from these lower energy prices? The poor.
To compare, energy prices have risen by 63 percent in England between 2005 and 2014 because of global warming policies. And these residential electricity rates hurt the impecunious 1.4 to four times more than the rich. Many are looking to cut back on essentials just to cover the cost of higher energy bills.
Once again, the free market has aided the impoverished members of society.
It depends on where you live and how much energy you use as to if you are saving enough to make a difference in your standard of living. I am retired live in MT where we have cheap hydroelectric power. I see very little savings in my budget. I have not purchased gasoline since July 2014. I use the city bus for all my transportation. I spend more feeding 2 people today, than I did feeding 6 people in the late 1990’s. I live in a 1,000 sq ft home with my wife, our utilities cost average $100 per month about the same they did 10 years ago.