Shale Gas to Create New Jobs in Large Numbers
Published By : 14 May 2015 | Published By : QYRESEARCH
The Shale gas revolution in the U.S., was for some, going to thrust a manufacturing renaissance. This was so as companies tried to take advantage of cheap and abundantly available natural gas.
It has not happened so far, but it is only matter of time until it is seen.
As per a report published by American Chemistry Council, the plastics industry is projected to generate 127,500 new jobs in the next decade. This is so, as chemicals companies are adopting new production strategies to leverage cheaper energy.
Additionally as per the report, if the ratio of natural gas prices to Brent crude oil is above seven, it is an indicator of improved competitiveness for American producers over their foreign counterparts. In Europe and Asia producers employ oil-based raw materials for plastic resins, while in the U.S. producers use ethane.
In the first quarter, the ratio of natural gas to oil was found to be over 15. This is also in aid to help companies in the U.S. stay in the competition, owing to rising wages in overseas locations, higher transportation prices, and supply chain considerations.
The report projects the peak investment to happen in 2018. As per senior director at the trade group, such projects are not turnkey type. The group made forecasts on the basis of projects that were announced since 2010.
The report also states 173,000 indirect jobs will be created mainly from suppliers, and 161,000 jobs that will happen on account of the remittances of the new factory workers filtering into city communities. Although significantly sizeable, this is only a small portion of around 16 million new jobs that the Labor Department initiatives will create nationwide in the next decade.