Thursday, October 9, 2014

Your good news for a Thursday


The shale revolution has quickly and completely remade America’s energy landscape, leaving us in a much stronger position, both economically and geopolitically, than where we found ourselves just a decade ago. The FT reports:
The price gap has led to a 6 per cent average increase in US manufactured product exports, the IMF wrote in its twice-yearly World Economic Outlook. [...]
Lower prices for natural gas favour energy- and gas-intensive industries, such as steelmaking, oil refining, and nitrogen fertiliser production. The International Energy Agency has previously warned that Europe will lose a third of its share of global energy-intensive exports over the next two decades because its energy prices will remain stubbornly higher than those in the US.
Cheap energy is key for economic growth, and a glut of natural gas is leading to a kind of small renaissance in American manufacturing, especially in energy-intensive industries. More fracking means more gas, lower prices, and growth potential for firms that use that gas.

2 comments:

  1. The oil is the only way that the nation can get out from under the debt that your president saddled us with.

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