Below are some excerpts from an article today in Bloomberg
highlighting America's energy bonanza and the powerful economic stimulus it's providing to the U.S. economy, including the creation of millions of shovel-ready jobs and hundreds of billions of dollars in investment:
"On the eastern bank of the
Mississippi River, about an hour upstream from New Orleans, the
outline of Nucor Corporation's new $750 million iron-processing plant
is rising between fields of sugar cane and sweet gum trees.
It’s a harbinger of a nationwide investment boom spreading
from the oil fields of North Dakota and the Marcellus gas shale
in Pennsylvania to power plants in California and chemical
refiners in Texas. A surge in U.S. natural gas development has
spurred $226 billion in spending plans on pipelines, storage,
processing facilities and power plants, most slated for the next
five years, according to Industrial Info Resources, a market-
intelligence provider in Sugar Land, Texas.
U.S. energy supplies have been transformed in less than a
decade, driven by advances in technology, and the economic
implications are only beginning to be understood. U.S. natural
gas production will expand to a record this year and oil output
swelled in July to its highest point since 1999 (see top chart above). Citigroup estimated in a March report that a “reindustrialization” of
America could add as many as 3.6 million jobs by 2020 and
increase the gross domestic product by as much as 3 percent.
There are signs the economic gains have begun to
expand beyond the oil and gas fields and that the promise of
abundant, low-cost fuels will give a competitive edge to
industries from steel, aluminum and automobiles to fertilizers
and chemicals. That would provide a boost to a U.S. manufacturing sector
that has lost 5.12 million jobs since 2001 and become the focus
of a national debate over how to revive factory employment.
Manufacturers have added 532,000 jobs since January 2010 as the
economy started to recover, Bureau of Labor Statistics data
The expansion of fossil-fuel production -- coupled with a
weak economy and increased energy efficiency -- has helped the
U.S. pare its crude oil imports by 17 percent since the 2005
peak, Energy Department data show. Imports in 2011 accounted for
45 percent of U.S. consumption of crude and refined products.
The department predicts the share will fall to 39 percent next
year, which would be the first time since 1991 that imports
dropped below 40 percent of demand (see bottom chart above)."
As I have commented recently
, America's ongoing energy
revolution is one of the real bright spots in an otherwise sub-par economic expansion, and provides one of the best reasons to be bullish about
America's future. The Bloomberg article highlights many of the direct and indirect economic benefits that are flowing through the economy from America's abundant energy treasures.
HT: Jon Murphy