With all of the talk and concern expressed about outsourcing or shipping jobs overseas, a Fortune magazine article reveals that fracking is helping to lower US production costs. One consulting firm, BCG, is quoted as saying that manufacturing costs in the US are only 5% higher in China but almost 20% lower than Europe. In the next three years, BCG projects that it will be nearly 3% cheaper to manufacture here than in China.
While rising wages in China are resulting in higher production costs, production in the US has been increasing with booming oil production assisting industries that are energy intensive such as steel and paper. Increased oil production resulting from fracking has also helped drive down US energy prices to as much as 50% lower than Europe, respectfully.
Fracking will also mean more opportunities for natural gas extraction which could mean more innovations on automobile and other machineries that depend on oil could be converted to natural gas. As a result, the US could not only lower its dependence on oil but also (in theory) reduce greenhouse gas emissions. The article points out, that the US is fifteen years ahead of other countries in terms of fracking usage and, best part about it, The Washington Times reports that the political tide seems to be turning against fracking opponents.
All of this is great news and certainly puts a crimp in the plans of environmentalists who seek to destroy the US oil and gas industries out of their demented hostility to mankind being able to bend nature in order to not only survive but prosper. Oil and gas companies and their respective employees provide enormous value not only to our economy but to our lives in general. I have no doubt that the greens are not finished and will come up with some other way in which to either outlaw or hinder not only fracking but oil and gas production overall. For now, I will savor this good news.