The outlook for the U.S. energy situation is much brighter than it was just four years ago and this has positive implications for the economy and for the manufacturing sector. Even though the prices of oil and petroleum products have been on a roller coaster in recent years, the United States has benefited from greater production of both commodities, reduced consumption of petroleum products, and increased exports, because these trends have reduced the U.S. import bill for oil and natural gas. Increased oil and gas production and lower natural gas prices are providing incentives for reshoring of some manufacturing activity as well as investment by European companies seeking to take advantage of lower energy costs and a competitive labor market. Finally, increased production is contributing to greater security of U.S. oil and natural gas supplies.
Oil and Natural Gas: Back to the Future
Tuesday, September 4, 2012