Last Thursday, Reuters reported: “Vast
reserves of natural gas and oil unlocked from underground shale deposits have
slashed the price of U.S. natural gas to a fraction of costs in Europe and
Asia, making it some of the cheapest energy in the world. That is cutting
production costs at U.S. factories, making 'Made in America' a more attractive
option and driving investment in everything from foundries to chemical plants.
The shale energy revolution could also turn the United States into a net
exporter of many fuels in little more than a decade, transforming energy from
the economy's Achilles' heel to a source of strength.”
If environmental concerns raised by new
drilling techniques don’t lead to regulations that snuff out the boom, America
will become a net energy exporter in just over a decade. Truck stops around the
nation are adding tanks of LNG because it is substantially cheaper than diesel.
Trucks transport roughly three-quarters of American freight, so lower
transportation costs could provide a big boost to the economy. The resulting
boom could add between a half percentage point and a full percentage point to
annual real GDP growth over the next 10 to 15 years.
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