Skip to comments.Shale gas could spark U.S. manufacturing revival
Posted on 06/04/2012 7:39:37 AM PDT by thackney
The natural gas drilling boom spreading across the U.S. could spark a revival in U.S. manufacturing and may lead to more than 1 million jobs by 2025, according to a group of economists.
Robert McCutcheon, an economist with consulting group PwC, said at a manufacturing summit in Cleveland that natural gas could provide manufacturing companies a cheap source of energy that ultimately could save them $11.5 billion in energy costs by 2025.
If we save $11.5 billion, thats investment capital that could be redirected elsewhere, he said.
A study by PriceWaterhouseCoopers found low-cost energy could create as many 1 million new manufacturing jobs in the U.S. The report pointed to various projects, including several in Texas, as examples of an upward trend in the manufacturer sector.
We believe that the factors are in place for these trends to continue, despite concerns and uncertainties over how, and to what extent, the United States should use its shale gas reserves, the report concluded.
The report found inadequate infrastructure, current tax policies and uncertainty over the environmental impacts of hydraulic fracturing could hinder the rising trend in the manufacturer sector.
If a manufacturing revival does come to the U.S., Texas might be among the states that benefits the most from the change.
According to a survey by Pepperdine Universitys Michael Shires, Houston, San Antonio, Austin and Fort Worth are among the top 10 cities who could power the manufacturing revival. Seattles aerospace sector helped power it to the top spot on the list.
Houston, which ranked fourth, is the third-biggest manufacturing center in the United States behind Chicago and Los Angeles, according to a Forbes story. It like San Antonio and Fort Worth made the list because of the booming energy sector.
The Bayou City also is one of the few cities who can boast about having more manufacturing jobs than before the recession. According to Forbes, Houston has seen a 0.5 percent rise in manufacturing jobs since 2006.
The number of jobs is likely to rise in the Houston area after the completion of the expansion project at the Motiva refinery in Port Arthur and Exxons plans for a multibillion expansion at its Baytown complex.
Both announcements in the past week will likely bring more energy-related jobs to the region, officials said.
Port Arthur is part of the Houston Area in the same way Philadelphia is part of the New York City Area. Both about 90 miles apart.
manufacturing what pray tell? It seems like we have all the junk we could possibly use and are just at the point of replacing stuff that isn’t even all that old
:: If we save $11.5 billion, thats investment capital that could be redirected elsewhere ::
That’s such “old” capitalism talk! Get with the new socialism...”If we save $11.5 billion, thats investment capital that could be conscripted by the government for welfare benefits”.
And they wonder why american business is hoarding cash.
That would be a good start on the 10 million jobs lost during the last five years..........
Refiners and Chemical Plants are considered Manufacturing.
There was a news story on an Austin station this morning that banks in south Texas were seeing such an influx of money that they are having trouble investing it fast enough.
* A 15 to 18% Flat Corp Tax
* Repeal Dodd Frank
* Repeal Obamacare
* Repeal Sarbanes Oxley.
* Allow ex-pat companies a window to comeback without penalty, bring the jobs back home.
* Neuter / Combine the EPA and DOE into one organization who's main focus is assisting in resource utilization and cost effectiveness.
* Loser pay rules in Tort Law Suits with a cap on punitive damages.
* Eliminate Cap Gains Tax (?)
...and replace with consumer pay private insurance providers.
Karnes Countys taxable value has grown from about $270 million to more than $1.5 billion in the past three years.
It is a rags-to-riches-back-to-rags-back-to-riches kind of story.
Sounds as if Tony Montana may be in the area. Tony on getting laid-"First chu get de money, den chu get de power, den chu get de weemen!"
We just got a nice check for from a leasing company for the land I have in Lee county. It’s going into the bank tomorrow.