CNN Money just posted an article about the impact that shale gas can have on the United States economy.

It’s true, the economy isn’t recovering as quickly as everybody had hoped. Martin Neil Baily, a senior fellow in Economic Studies at the Brookings Institution, says America’s recent shale gas boom may be exactly what the economy needs.

Baily says:

While it may sound like the latest energy fad, the shale boom is for real and a serious game changer because of its size and potential longevity. Based on equivalent amounts of energy, natural gas has been about half as expensive as oil for many years.

It’s been known that money from oil wells spurs local economies, but many forget about the bigger picture. With such an abundance of natural gas and oil, prices are going to plummet and that’s good news for cash-strapped Americans.

Baily mentions that although cheap gas may not be enough to offset the slow economy in the short-term, it is a great long-term investment.

Read this article, it’s very interesting.

» Via: CNN Money › Could cheap gas save the economy?