Shale Plays Fuel Manufacturing Growth

As many as 5 million manufacturing jobs could be added over the next eight years
Manufacturing Plant

Manufacturing Plant | Click to Enlarge

Shale plays are driving a surge in U.S. natural gas production. Production growth has pushed prices well below the peaks experienced in the 2000’s. Natural gas at less than $4/mmbtu, as of the end of 2012. Cheap fuel means cheaper energy, cheaper manufacturing, and cheaper products.

Natural gas or by products are used for heating, power generation, and as a feedstock in multiple chemical and manufacturing processes. A recent BCG study noted that rising factory productivity will boost U.S. exports and lead to the growth of as many as 5 million jobs. Five million jobs added to a workforce that measures approximately 150 million would be almost 3% growth from one sector of the economy. Add direct oil and gas jobs and you see why what we’re experiencing in the South Texas Job boom could translate to a widespread employment boom. [Read more…]

PEMEX Shale Play Spending to Grow to $200 Million

Mexico's shale plans can be paced due to cheap supplies in the U.S.
Mexico Eagle Ford Shale Map

EIA Mexico Eagle Ford Shale Map | Click to Enlarge

PEMEX is preparing to spend $200 million researching and testing shale plays in Mexico. The national oil company plans to test two shale plays, with a focus in the Eagle Ford and one other play.

Commissioner Guillermo Dominguez said seismic studies to be carried out are designed to determine whether the rich petroleum deposits found in shale rock formations in the U.S. extend into Mexico. He said one of the two “large blocks” to be studied is an extension of the Eagle Ford shale rock formation that runs from Texas into Mexico. The other site is just down the Gulf of Mexico near Tampico. [Read more…]