Thursday, July 26, 2012

America’s Energy Sector Delivers An Economic Stimulus Of Almost $1 Billion Every Day

A new global energy report from Bank of America/Merrill Lynch estimates that the economic benefits to the U.S. economy from booming domestic energy production, especially from the surging output of unconventional shale gas and oil, are approaching $1 billion per day.
To calculate the economic benefits that are being generated from America’s vast energy resources, Merrill-Lynch introduces the concept of “energy carry” in its report, defined as an estimate of the daily dollar value of the improvement in our energy balances, including “the natural gas advantage of the U.S. economy relative to Europe or East Asia, the growing revenues from increased exports of fuels, and the reduced crude oil import bill.”
By that measure, America’s “energy carry” was $900 million per day in April, and the energy benefits to the economy will reach $1 billion per day by the end of the year. Merrill Lynch estimates that the daily “energy carry” in January 2010 was only $70 million per day, so the daily economic benefits of energy to the U.S. economy increased dramatically by a factor of more than 12 times in just a little over two years.

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