Insight on Manufacturing

January 2015

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24 | /INSIGHT ON MANUFACTURING • Januar y 2015 w w w.in s i g h t o n m f g . c o m By the NUMBERS The effects of shale gas production on the country's energy mix and energy independence have progressed beyond expected and have made the U.S. a more attractive locale for manufacturing, according to the PricewaterhouseCoopers' whitepaper "Shale gas: Still a boon to U.S. manufacturing?" The U.S. overtook Russia as the world's largest natural gas producer in 2010. The International Energy Agency expects the nation to surpass both Saudi Arabia and Russia as the global leader this year. Continued low natural gas prices and high yields will positively impact energy-intensive manufacturing sectors, such as metals, and sectors which use natural gas as a feedstock, particularly chemicals and petrochemicals. Shale gas positively impacts U.S. manufacturing U.S. electricity generation by fuel, 1990-2040 (trillion kilowatt hours per year) Natural gas export prospects are growing. The Department of Energy received 44 applications to export domestically produced liquefied natural gas from the lower 48 states as of Oct. 21. 32% of China's consumed natural gas in 2013 was imported, up from 2% in 2006. 84% of the country's energy demand was met by domestically produced energy in 2013, up from 69% in 2005. Natural gas prices in the U.S. fell about 75% during the same period. For U.S. manufacturing, shale gas development could lead to an annual cost savings of $22.3 billion by 2030 and $34.1 billion in 2040. It could create 930,000 new jobs by 2030 and 1.41 million by 2040. Source: PricewaterhouseCooper's "Shale gas: Still a boon to U.S. manufacturing?" History 2012 Projections 0 1 2 3 4 5 6 2040 2030 2020 2010 2000 16% 9% 19% 52% 3% 30% 12% 19% 37% 1% 35% 16% 16% 32% 1% Oil and other liquids Coal Nuclear Renewables Natural gas

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