Fitch: Shale boom will provide broad set of benefits for U.S. economy

Increasing oil and gas production will provide a significant boost to development in the United States, according to a report from Fitch.

In a recent report, Fitch Ratings asserted that the ongoing surge in domestic oil and gas production will yield significant benefits for the U.S. economy. According to the company's research, the petrochemicals sector and other manufacturing industries will be in a particularly strong position to benefit from the shale boom.

The general outline of the hypothesis put forward by the analysts at Fitch is supported by other research. For instance, last week we looked at a report from PricewaterhouseCoopers (PwC), which projected that rising production of oil and gas from shale formations and other unconventional sources will have a significant effect on global energy markets.

PwC's analysts suggested that, despite the existence of numerous obstacles, shale oil could account for as much as 12 percent of global crude production by 2035. However, it's the prospect of plentiful natural gas that will yield the greatest benefits for U.S. companies, according to Fitch.

The organization's research pointed out that an expanding gas supply has driven down domestic electricity prices, allowing various American industries to increase their profit margins. As firms in these sectors expand to capitalize on the available opportunities, the increase in demand will bolster energy prices, ensuring oil and gas companies continue to have incentives to initiate new exploration and production activities.

As producers look to play their part in keeping this boom going, the importance of using the right oil production equipment will be paramount. Implementing an oil jet pump or other hydraulic lift equipment can be particularly helpful, in terms of allowing a company to maximize output from its oil and gas wells.