Wednesday, March 29, 2017
The energy revolution continues to bring good economic news to an otherwise anemic economy, writes Karen A. Harbert, president and CEO of the U.S. Chamber of Commerce’s Institute for 21st Century Energy. And now there’s a new example to demonstrate just how true that is. Speaking at the recent CERAWeek 2017 conference, ExxonMobil CEO Darren Woods outlined a new 'Growing the Gulf' initiative to increase the company’s manufacturing capabilities in the U.S. Gulf Coast region.
As part of the initiative, the company will be investing $20 billion to build or expand 11 different facilities, at the same time creating 45,000 jobs. So why is a giant company best known for oil production investing so much in manufacturing? Last year, the Chamber’s Sean Hackbarth captured the essence of how America’s energy revolution has sparked a manufacturing revolution as well.
The natural gas, crude oil, and gas liquids being produced across the country in record amounts are the chemical building blocks for products used every day, from clothing to cosmetics to pharmaceuticals. “One needs to look no further than the aisles of a department store to see all the plastic products, and that plastic comes from natural gas and oil. Sophisticated, high-tech manufacturing facilities turn out these energy resources into the products we buy every day,” Harbart observes.
She adds that as the U.S. produces more home-grown energy, it is leading to more home-grown manufacturing as well. Plentiful energy resources are making it less expensive to build products in the U.S., and those same resources are also providing the electricity needed to run manufacturing facilities at reduced costs.
“All this manufacturing means more choices for American consumers, and it gives us an opportunity to export products,” says the institute CEO. “Domestic U.S. manufacturers are now competing all over the world, helping to reduce our trade deficit and creating jobs back at home.”
As a result, the U.S., especially the Gulf Coast, is becoming the epicenter of a manufacturing renaissance — exactly as expected. In 2014, the Institute for 21st Century Energy launched its Shale Works for U.S. campaign, which included a report produced with IHS CERA that quantified the far-reaching benefits of the shale revolution.
“It is important to note that because of our national supply-chain, the benefits from investments reach each and every state, and in turn bring jobs, revenues, and benefits to every corner of our nation,” adds Harbart. “It’s exciting to see these predictions borne out, and it’s a continued sign that America’s status as an energy superpower will help bring prosperity to us all — while driving innovation and technological advancement that help make America an economic superpower as well.”
As part of the initiative, the company will be investing $20 billion to build or expand 11 different facilities, at the same time creating 45,000 jobs. So why is a giant company best known for oil production investing so much in manufacturing? Last year, the Chamber’s Sean Hackbarth captured the essence of how America’s energy revolution has sparked a manufacturing revolution as well.
The natural gas, crude oil, and gas liquids being produced across the country in record amounts are the chemical building blocks for products used every day, from clothing to cosmetics to pharmaceuticals. “One needs to look no further than the aisles of a department store to see all the plastic products, and that plastic comes from natural gas and oil. Sophisticated, high-tech manufacturing facilities turn out these energy resources into the products we buy every day,” Harbart observes.
She adds that as the U.S. produces more home-grown energy, it is leading to more home-grown manufacturing as well. Plentiful energy resources are making it less expensive to build products in the U.S., and those same resources are also providing the electricity needed to run manufacturing facilities at reduced costs.
“All this manufacturing means more choices for American consumers, and it gives us an opportunity to export products,” says the institute CEO. “Domestic U.S. manufacturers are now competing all over the world, helping to reduce our trade deficit and creating jobs back at home.”
As a result, the U.S., especially the Gulf Coast, is becoming the epicenter of a manufacturing renaissance — exactly as expected. In 2014, the Institute for 21st Century Energy launched its Shale Works for U.S. campaign, which included a report produced with IHS CERA that quantified the far-reaching benefits of the shale revolution.
“It is important to note that because of our national supply-chain, the benefits from investments reach each and every state, and in turn bring jobs, revenues, and benefits to every corner of our nation,” adds Harbart. “It’s exciting to see these predictions borne out, and it’s a continued sign that America’s status as an energy superpower will help bring prosperity to us all — while driving innovation and technological advancement that help make America an economic superpower as well.”
