U.S. The hidden value of cheap gas.

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Technological developments in recent years have changed world energy market and allowed the revitalization of chemical and steel industry, especially in the U.S. The latest decline in global oil prices has accelerated expansion of chemical and manufacturing plants despite enhanced OPEC efforts to undercut it. The hidden value of cheap gas is more suitable for economy growth than for international mining companies. The U.S emergent economic development can be comparable to the Industrial Revolution which took place from the 18th and 19th centuries.

Steel sector.

The American steel industry has been facing up to the impact of the global crisis since 2007. Internal markets have struggled to stay profitable among stagnant domestic demand, low prices and increasing Chinese imports.

Asian countries, principally China and Taiwan have been offering cheaper labor and sufficient amount of the raw materials for many years. The U.S domestic production of steel decreased 11 percent between 2007 and 2013, while Chinese production during that period increased 57 percent.

Unconventional sources of energy has enabled the American steel industry to get  back on track. The largest companies have made diversifications and established appropriate investments. A titan of industry Nucor Corp spent $750 million in an iron-ore devices in St. James Parish, Louisiana. Simultaneously, influential Austrial steel maker Voestalpine invested about $634 million in a new factory.

Currently, market analysts predict that new investments can provide about 1 million new jobs by 2035. “Low natural gas prices are spurring new manufacturing investment and creating jobs” said Katherine Miller, a Nucor spokeswoman.

Chemical sector.

The chemical sector was another branch of an American industry which was modernized. The hydraulic fracturing of shale formation has led to a rapid growth of chemical plants mainly in Louisiana and Texas. Modern factories have used natural gas to produce a wide variety of products including plastics and liquid fuels. “Plants use natural gas like a bakery shop uses flour”, said Dan Borne, president of the Louisiana Chemical Association.

The most influential chemical companies such as: Du Pont, Dow Chemical, Eastman Chemical or Westlake Chemical have boosted their production and prepared ground for foreign funds.

According to The American Chemistry Council 238 U.S chemical companies have declared money for new projects. Investment spending in the industry increased 64% from 2010 to 2014, to $34 billion. The ACC assumes spending to rise another 37% by 2018.

This jump in industrialization will stimulate stock market and provide higher employment . However, too high environmental degradation and revolution in energy policy can cut optimistic expectations.

In conclusion.

To sum up new technologies, low gas prices and considered diversifications can  make a great influence on an American society. New plants will generate not only profit but also workplaces. In spite of all the advantages, government and companies can’t forget about environmental challenges and their future impact on safety standards and health.

Sources:

http://www.forbes.com/sites/kensilverstein/2015/05/10/flood-shale-gas-spilling-into-communities-across-america/#22918c41ed83

http://e360.yale.edu/feature/natural_gas_boom_brings_major_growth_for_us_chemical_plants/2842/

Shale Revolution Accelerates Chemicals Industry

http://www.smh.com.au/business/shale-gas-revolution-a-major-boost-for-us-steel-sector-20130101-2c4co.html

http://www.ft.com/intl/cms/s/0/4dacb6a0-10f8-11e5-9bf8-00144feabdc0.html

http://www.micromotionblog.com/wp-content/uploads/2015/09/iStock_000023984130_Small.jpg

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