The United States oil and natural gas industry is in the midst of a boom, as a direct result of these aforementioned fracking improvements. Drilling in a new region spurs development, and also creates jobs – at a time when American citizens are still desperate for employment. One industry that will progressively expand in the United States – as our natural gas resources are utilized on a large scale – is the chemical industry. Chemicals that are natural gas-derivatives, in the past, have been manufactured in Middle Eastern countries where natural gas has been less expensive than in the United States. However, recently, natural gas has become as cheap domestically as it has ever been abroad. Expect chemical companies to relocate domestically, focusing on undeveloped areas with large shale plays.
Another source that will increase U.S. natural gas production and generate jobs, is Mexican demand for natural gas. Petroleos Mexicanos (Pemex), Mexico’s state-sponsored oil and gas monopoly, has begun cutting natural gas supplies to some of its largest customers by as much as 45% to cope with increasing demand from households and steelmakers alike. Pemex, for the most part, has failed to tap into Mexico’s abundant natural gas reserves, forcing it to turn to imports from the U.S. in order to keep up with demand. The country’s oil and gas pipelines are functioning at ~95% in an attempt to cover shortfall, but many Mexican businesses are still regularly forced to work through outages that can sometimes last hours. In response, two new gas pipelines that would connect central Mexico with Texas and Arizona – where plentiful shale gas supplies would welcome an outlet – are being rushed through planning and development.
With questions, or otherwise, please feel free to contact us at: info@fidmr.com
