US Natural gas production and the return of manufacturing ?

An article in Bloombergbusinessweek (Nov 7, 2011) describes the rise of shale gas extraction, suing fracking, and the US becoming the world’s largest natural gas producer. With natural gas becoming a low priced energy alternative to coal, with lower greenhouse gas emissions and less mercury etc, manufacturers using significant energy are considering moving overseas production back to the US. Dow Chemicals plant expansions in Lousiana and Texas is used as an example, along with other plastic and steel manufacturers.  Will the rising natural gas production be a stimulus to bring back manifacturing to the US ? Do the lower environmental footprint and lower costs justify shifting to US production even if labor costs are higher ? Should the potential environmental costs for shale gas extraction be balanced against its role as an alternative to coal when determining energy source choices ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability and tagged , , , , , , . Bookmark the permalink.

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