This shift in the trade balance can be attributed to the effects of the domestic energy boom, which is led by fracking operations. Tipping the scales in favor of the U.S. economy were the consistent decreases in the imports of crude oil and other petroleum products. While job creation still remains slower than desired, the more favorable trade balance situation does bode well in signaling a stronger overall growth for the economy.
Prior to the near-collapse in 2008, the U.S. financial system had been vulnerable to crashes due to the large current account deficits. In reports on the third quarter, however, the nation’s current account deficit was 2.2 percent of GDP, which is the lowest level seen since the start of 2008.
On one side of the situation, it is better for workers if the shift in the financial imbalances was caused by rising exports, especially from the labor-intensive industries. On the other side, however, because of the energy boom, one of the biggest contributors to the imbalances behind the crisis is disappearing and it is a good step towards a sustainable economic recovery.
Dr. Ali Ghalambor is the editor of the “Frac-Packing Handbook,” a comprehensive collection of system guidelines that covers the most fundamental to the most highly advanced issues in frac-packing operations. Find articles about developments in the energy industry ton this Facebook page.