The surge in U.S. oil production is making a difference in the energy market, even if American consumers aren’t necessarily seeing the savings at the pump, Adam Sieminski, head of the Energy Information Administration, told lawmakers Tuesday.
U.S. crude oil production jumped by nearly a million barrels per day last year, reaching its highest average daily level since 1995, although gasoline prices so far this year have averaged $3.56 per gallon, a modest 6 cents below last year’s price, according to AAA data.
“Consumers are benefiting from domestic oil production,” Sieminski told the Senate Energy and Natural Resources Committee on Tuesday during a hearing on domestic oil production’s impacts on the price of gas.
The U.S. energy renaissance from shale has increased the amount of oil that is in the global market. And that increase, Sieminski said, is helping to hold international oil prices down and to further insulate consumers from even higher price shock.