The Shale-Gas Boom Comes to the U.K. and How The Multiplier Impact Can Revive Manufacturing

THE ECONOMIST --"On September 21 Cuadrilla Resources, the first firm to drill for shale gas in Britain, estimated that 200 trillion cubic feet of gas lie in an area near the seaside town in northwest England—nearly 40 times previous projections of all of Britain’s shale resources and, in theory, four times as much gas as is still recoverable from the North Sea. Cuadrilla hopes to drill 400 wells in Lancashire in the next decade."

WALL STREET JOURNAL --  "With Cuadrilla's announcement, shale gas goes from something ignored by policy elites on the grounds that it can only be developed in America, to something that is happening in real time in Europe."

And here's a key point made by Alan Riley in the WSJ article:

"One of the overlooked consequences of the U.S. shale-gas revolution has been the multiplier impact that access to large quantities of cheap gas can have on the broader U.S. economy. Shale gas could lead to a revival of the American steel and chemicals industry, and of energy-intensive manufacturing. It may also push food prices lower, since natural gas provides 80% of the constituent of most modern fertilizer."

MP: In addition to the shrinking manufacturing wage gap with countries like China, the "multiplier impact" from abundant, cheap natural gas could be another major factor in the pending renaissance of American manufacturing.