But now that the U.S. has become the biggest source of liquid oils in the world, thanks to the our domestic fracking revolution, the cost of energy is falling rapidly. Yesterday the price of oil fell by more than 4+% and it's falling another 1+% early this morning.
Global Oil Glut Sends Prices Plunging has the good news story for U.S. consumers:
"Every one-cent drop in gas prices means a $1 billion annual decline in energy spending by Americans, estimates Brett Ryan, U.S. economist at Deutsche Bank.
“It’s like a tax cut that consumers can use to eat out more often, buy more goods or help save for a new home,” he said.
The savings isn’t “a huge boost to GDP, but it’s a positive for U.S. corporates and makers of goods and services,” Mr. Ryan added. Tom Kloza, chief oil analyst for Gasbuddy.com, said the typical American family is saving about $50 a month based on the decline since June.
Brent, the global oil benchmark, fell 4.3% to $85.04 a barrel on Tuesday, a nearly four-year low. It was Brent’s largest one-day percentage drop since September 2011."