Fracking Saves US Consumers Billions

Why this is here: Between 2007 and 2025, US natural gas consumers saved roughly $250 billion annually thanks to shale gas production.

Lucas Davis calculates US natural gas consumers saved between $4.5 and $5.3 trillion from 2007 to 2025. He compares US liquefied natural gas prices—$5.3 per million cubic feet—to those in Europe at $14.4 per million cubic feet and Japan at $16.1 per million cubic feet. This price difference reveals the economic impact of increased US natural gas production through fracking.

The US shifted from importing natural gas to becoming the world’s largest exporter due to advances in hydraulic fracturing and horizontal drilling. These savings occurred between 2007 and 2025, averaging $237 to $276 billion each year. The benefits of lower energy costs extended across various sectors and states.

Davis notes the savings were especially helpful during global supply disruptions, such as the war in Ukraine. He acknowledges the calculations are estimates based on price comparisons and do not account for all possible economic factors. Further research may refine these figures and reveal more nuanced effects.