Shale Boom Helping American Consumers as Never Before

Oil traders might see the 27 percent slide in global prices as a bear market. For U.S. consumers, it’s more like an early holiday gift.

The drop in crude has pulled retail gasoline down more than 50 cents a gallon from the year’s high in April. That means annual savings of $500 for the average U.S. household, which consumes about 1,000 gallons of fuel a year, according to data from the Federal Highway Administration and Energy Information Administration.

Gasoline’s slide represents the biggest benefit that U.S. consumers have seen to date from a record boom in domestic oil production, a surge that’s contributing to a global crude glut and helping reduce international prices. U.S. gasoline is being exported at record levels for this time of year.


The average retail price fell 1.9 cents to $3.144 a gallon, Heathrow, Florida-based motoring group AAA said on its website. That’s down from this year’s peak of $3.696 in April and the lowest since February 2011. Futures have decreased 84 cents on the New York Mercantile Exchange over the same period, signaling there may be further declines at the pump.