White House Touts Shale Gas Revolution’s Role in Reviving U.S. Manufacturing
Monday October 10, 2016
EID has highlighted many times how cheap and abundant natural gas — made possible by hydraulic fracturing — has brought manufacturing back to life in America.
And to celebrate Manufacturing Day last Friday, the White House National Economic Council released a report entitled “Revitalizing American Manufacturing” that further illustrates how the shale boom has been instrumental to lifting the U.S. out of the depths of the Great Recession.
The report notes that since early 2010, U.S. manufacturing has added over 800,000 direct jobs. This is a remarkable reversal of fortunes, considering the manufacturing sector lost 5.7 million jobs — roughly one-third of all manufacturing workers — from 2000 to 2009, a higher share of jobs lost than during the Great Depression, proving particularly invigorating to traditional manufacturing hubs such as the Appalachian Basin, the Ohio Valley and Texas.
So considering one fifth of manufacturing is energy intensive — including plastics, fertilizers, chemicals, and steel manufacturing — its not surprising the report credits record low natural gas prices and production for turning things around.
“The surge in American natural gas production has lowered energy costs for manufacturers and driven job growth… Recent ana...