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The natural gas boom in America has generated thousands of jobs and provided a wealth of highly profitable ventures for drilling companies and investors alike. It has injected much-needed money into states like Texas and Louisiana and had a major positive effect upon their economies.
What is the long-term impact of this development likely to be? The results of a study conducted by RBC Capital Markets and Economist Intelligence Unit indicate that it will continue to create employment opportunities.
The boom has been predicted to create between 1 million and 1.5 million jobs in Texas alone throughout the course of the next ten to fifteen years.
Research indicates that it will also be particularly beneficial to the petrochemical and fertilizer industries, where energy input can comprise up to ninety percent of the total production costs, as it has resulted in cheaper natural gas supplies.
Liquefied Natural Gas Exports
Many American companies are putting plans in place to export liquefied natural gas to Asia and Europe, where prices are considerably higher. Almost two-dozen applications to export it to nations that don’t possess a free trade agreement with the US have been filed.
Business groups have stated that these liquid natural gas exports will create large numbers of jobs and lead to more US production.
Increased Natural Gas Use
Professor Thomas Tunstall of the University of Texas at San Antonio has stated that there is no shortage of uses for natural gas.
Tunstall claims that the reason that it hasn’t been utilized more for electric generation and manufacturing is that gas prices have been extremely volatile. Now that there is a more predictable supply, there is likely to be a greater shift towards the use of this commodity.
Economic Game Changer
Economist John Larson has described the natural gas boom as a ‘game changer’ with regards to the US economy.
The boom is likely to not only benefit a variety of different industries but also contribute to federal and state budgets by way of income taxes from the jobs that are created.
The NBC news network has highlighted the fact that the boom has contributed to the country’s energy independence. It is liable to continue to strengthen the nation’s global position throughout the years to come.
Impressive Longevity
Given its projected longevity, the impact of the natural gas boom is likely to be far-reaching. The boom is predicted to last for at least thirty years, providing it with ample time in which to create more jobs, fuel the economy and improve America’s global standing.
Another effect of the increase in natural gas production is that it will be likely to contribute significantly to the bank accounts of investors. The fact that this commodity will be produced in large amounts for such a long time period means that it is a particularly sound investment.
It is clear that there are a plethora of different benefits to the natural gas boom. It is an opportunity that will strengthen the nation considerably and put money in the pockets of US citizens for multiple decades.
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