US sees $90bn boost from shale gas boom

Financial Times ^ | December 14, 2012 | Ed Crooks

[2ndDivisionVet]

Manufacturers have announced more than $90bn worth of investments in the US to take advantage of its cheap natural gas, according to new calculations, underlining how the shale revolution appears to be driving the country’s industrial renaissance.

Petrochemicals, fuel, fertiliser and steel companies are among those that have committed to or are considering multibillion dollar investments based on their ability to source cheap energy and feedstocks.

The US investment boom has caused concern among manufacturers in Europe, who fear they will find it difficult to compete in energy-intensive sectors. The British government set out an attempt to launch its own shale gas industry last week to help revive the moribund economy.

The shale boom is reinforcing other trends that are also increasing the competitiveness of US manufacturing, including relatively slow wage growth.

Greg Garland, chief executive of Phillips 66, the US chemicals and refining group, said the boom in the country’s shale gas and oil production was a “huge change” for the economy. “This revolution is creating great opportunities to increase manufacturing capability, and has tremendous potential for economic impact and job creation,” he said...

[YankeeReb]

The shale boom is reinforcing other trends that are also increasing the competitiveness of US manufacturing, including relatively slow wage growth.

This makes sense, U.S. prosperity happened because of relatively expensive labor and cheap energy. Sadly the politicians seem hell bent on encouraging the opposite.