James R. Hagerty | The Wall Street Journal
Cheap energy flowing from the U.S. shale-gas boom is often touted as a “game changer” for manufacturing. Despite the benefits of lower energy costs, however, the game hasn’t changed dramatically for most American manufacturers.
Because of plentiful domestic supplies, natural-gas prices are likely to average $4 to $5 per 1,000 cubic feet over the next two decades, far below those in Europe, where they reached $10 to $13 recently, or northeastern Asia, where they have been $15 to $20, says Robert Ineson, who heads North American natural-gas research at IHS Global.
The winter season is coming to an end and the energy market readies for a slowdown in the need for heating fuels, but natural gas prices are up by 9%.
This energy-cost advantage is “a huge tailwind” for the U.S. economy, says John Faraci, chief executive of International Paper Co., IP -0.66% a Memphis-based paper-and-packing maker.
If you’d like to discuss energy issues, contact Court Rich, Co-Chair of Rose Law Group’s Renewable Energy Department at crich@roselawgroup.com
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