National Energy Policy | Video

Jennifer Joas | 1/10/2013

Fracking brought oil and gas development to the forefront in America. But the industry also plays a major role in boosting the economy. That`s why the American Petroleum Institute offered policy recommendations to Congress about how to best expand the energy industry.

Extracting oil and gas is a costly business. In the Bakken, each well can cost nine to eleven million dollars. So just imagine that multiplied by several oil formations across the country. The API estimates oil and gas investments could reach five trillion dollars by 2035.

"These are big numbers. They`re big economic impacts and as long as we don`t discourage that investment, it will continue to come to the United States," said API President and CEO Jack Gerard.

Gerard says without the proper policies, the Federal Government could hamper this expansion. So he`s encouraging Washington to open more federal land for oil and gas development, approve pipeline projects, such as the Keystone XL, and leave fracking regulations up to the states.

"Provide adequate regulation, but don`t over reach, don`t over react. And we`ll see these multiplier effects clear across the country, affects that you`ve already seen there in North Dakota."

The API also estimates the energy industry will add 1.3 million jobs by 2020.

Even though renewable energy consumption is expected to increase, the API estimates that 59 percent of U.S. energy demand will still be met by oil and natural gas in 2040.

COMMENT ON THIS STORY