Low-cost energy fuels U.S. manufacturing and jobs renaissance, says Elliott Gue in Energy & Income Advisor.
Despite some claims that manufacturing jobs are leaving or decreasing in the United States, an energy strategist in Energy and Income Advisor, says manufacturers here and abroad are actually building new plants in the United States, thanks to America's low energy cost and near-limitless domestic reserves.
According to a press release from Energy and Income Advisor, Elliot Gue says because China must import much of it energy, manufacturing costs there continue to escalate. Gue says that makes the United States looks cheap to manufacturers that are building energy-efficient plants fueled by the low-cost natural gas.
According to the press release, recent shale oil and gas discoveries in the country decreased gas prices, while natural gas costs in countries around the globe are up three times higher.
United States energy production costs are also lower than anywhere else, says Gue, leading manufacturers like Dow Chemical and steelmaker Severstal to build new plants in the U.S.
This new American manufacturing renaissance will be fueled by the ongoing development of domestic shale plays, which, according to estimates from the Energy Information Administration, could contain up to 862 trillion cubic feet of recoverable natural gas.
It's projected that lower U.S. energy costs could save manufacturers as much as $12 billion in the next 10-12 years -- and create as many as 1 million jobs in 12 years.