White House: Energy Production Plays Key Role in US Economic Growth

Increases in U.S. oil and natural gas production are playing a key role in improving the U.S. economy, White House officials noted in a recent entry on the White House blog.

National Economic Council Director Gene Sperling and Jason Furman, chairman of the Council of Economic Advisors, in an Aug. 29 blog entry, referenced a report by the Bureau of Economic Analysis in which the bureau upwardly revised its estimate of second quarter gross domestic product from 1.7 percent to 2.5 percent.

The stronger growth estimated resulted from an upward revision of net exports; a key part of that revision can be attributed to the petroleum trade deficit falling to a record low in June, Sperling and Furman said.

“This is yet another reminder that the President’s focus on increasing America’s energy independence is not just a critical national security strategy, it is also part of an economic plan to create jobs, expand growth and cut the trade deficit,” Sperling and Furman noted.

They added that the United States is on track to meet President Obama’s goal of cutting U.S. oil imports by half by 2020.

The American Petroleum Institute (API) in a Sept. 3 blog entry praised senior White House officials for pointing to oil and gas natural gas production increases as key factors in an improving U.S. economy, but took issue with officials’ assertion that the U.S. government played a key role in boosting domestic energy production.

“We’ve long talked about the connection between increased domestic oil and natural gas production and job creation,” said API in the blog post. “With increased access to U.S. reserves offshore and onshore and a common sense approach to regulatory policy, we can build on the energy momentum noted by Sperling and Furman.”


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