Shale Gas May Spark Manufacturing Renaissance in US

Shale Gas May Spark Manufacturing Renaissance in US

Report Gives Positive Outlook for US Manufacturing

A report released by PwC titled Shale Gas: A renaissance in US manufacturing? gives a positive outlook on the future of manufacturing in the US. The report estimates $11.6 billion in cost savings by 2025 by combining recent natural gas consumption levels with potential natural gas prices under high shale recovery scenarios. Under the high scenario, manufacturing employment could increase by up to one million by 2025.

As a result of production from a stable supply of gas, manufacturing industries are able to lower feedstock and energy costs, looking to shale gas as a source of growth for their products. Industries likely to benefit from the increased use of U.S. low-cost gas supplies are chemicals, metals and industrial manufacturing.

According to PwC, the relatively simple and stable long-term source of natural gas is helping manufacturing companies to expand and open more facilities in the U.S., presenting an opportunity to create more jobs in the industry. Shale gas has also contributed to more manufacturing investments in the U.S., such as chemical companies seeking cost advantages by using ethane, a cheaper natural gas liquid derived from shale gas. Manufacturers outside the chemical industry also have announced expansion plans due to incremental energy resources and plan on making investments in the U.S. based on the opportunity to sell equipment for shale gas plays.

The U.S. Federal Reserve Board Data has manufacturing capacity utilization at 75.8& as of November, rising steadily since June 2009, where it reached a low of 64.2%.

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Ethane Cracker Plant

Shell recently announced that they will be building a $6 billion ethane cracker plant near Pittsburgh. This plant will boost employment, economic development, and commercial real estate, while encouraging more shale drilling throughout the region.


The upcoming construction of the new multi-billion dollar Shell ethane cracker plant in Beaver County, PA, means that there are unlimited opportunities for everyone who is involved in any aspect of regional business development. Marcellus Utica Connection is seeking strategic partners to launch marketing initiatives and connect the different industries that will most benefit during this time of unprecedented growth.