by Mitch Kokai
Senior Political Analyst, John Locke Foundation
The average American now pays less than $2.00 a gallon for gasoline due to cheap energy provided by hydraulic fracturing, or fracking, according to a report by the American Automobile Association (AAA) published Monday.
The current national average gas price is $1.99 per gallon, the cheapest it’s been since March 25, 2009. Just last year in 2015, consumers paid an annual average gasoline price of $2.40 per gallon.
The low gas prices are due to the cheap oil and cheap natural gas-fired electricity provided by fracking and horizontal drilling. Energy prices dropped 41 percent over the course of 2015 due to fracking. Other commodities fell in price as well, but not nearly as much as energy, according to the Energy Information Administration (EIA).
Fracking even helped America surpass Russia early in 2015 as the world’s largest and fastest-growing producer of oil and natural gas. Fracking also takes credit for American oil and natural gas reserves being at their highest levels since 1972.