Media Reluctant To Credit Fracking For Lower Oil Prices

In recent months, the price of crude oil has dropped, which has in turn led to a drop in gasoline prices.  American oil production has increased during the last few years, and could soon exceed that of Saudi Arabia, which would make the United States the world's largest oil-producing country.  But as NewsBusters found out, the reason for the increase in American output is rarely being acknowledged by major broadcast media.

Fracking and other advanced technologies helped the U.S. nearly double its average daily output of oil, from 5 million barrels in 2008 to an expected 9.42 million barrels in 2015. The huge supply increase was one factor sending crude oil prices down. Crude fell by more than 32 percent, from $93 to $63 just since Sept. 29. This already drove gas prices down to a national average of $2.66 for regular on Dec. 9, according to AAA.

This is great news for consumers and businesses which could save as much as $1.3 trillion worldwide because of lower oil prices, according to Julian Jessop, chief global economist at Capital Economics in London. Here in the U.S., Americans could save $230 billion if prices remain low for the next year, The Washington Post said on Dec. 1.

Despite the networks' acknowledgement of falling oil and gas prices, the evening news shows almost completely avoided giving any credit to fracking for the dramatic drop. More than 93 percent (29 of 31) of ABC, CBS and NBC evening show stories and news briefs about oil and gas ignored fracking. More than 77 percent (24 of 31) of those stories between Sept. 29, and Dec. 8, even failed to mention domestic oil production increases.

There is one possible drawback.  Since fracking is a relatively expensive process, prices for crude oil could become so low that fracking would not be profitable.  However, the oil industry does not seem to have encountered this problem - yet.  Read the full story.

UPDATE:  While the American media are reluctant to attribute lower oil prices to fracking, the president of Venezuela has no doubts whatsoever, as reported by Fox News Latino.  (also via NewsBusters)