Fracking Fueled This $100 Billion Revival in America

Photo credit: Flickr/Bob Jagendorf

Manufacturing is coming back to America. The numbers are quite stunning, actually. Estimates suggest that nearly $100 billion is being spent to bring manufacturing back to America.


What's almost as surprising is this revival in the manufacturing sector isn't due to some new government program or business-friendly tax break. The single reason why manufacturing is coming back to America is because fracking has unlocked so much low-cost natural gas.

According to Energy in Depth, the cumulative known investment in manufacturing currently sits at 117 projects totaling $80 billion. But there are estimates suggesting the number is closer to $100 billion. Not only that, the employment impact of these projects is equally as staggering. Current estimates project 515,000 jobs being created from America's manufacturing rebirth.

From plastics to fertilizer plants, the manufacturing boom features several projects that are only possible with low-cost natural-gas supplies. That's because natural gas is an important feedstock used by these manufacturers to create the products we need for our everyday lives.

One word: plastics
A great example of this is the proposed world-scale ethane cracker that Sasol wants to build in Louisiana. The multi-billion-dollar project would produce ethylene, which would then be used to make products such as synthetic fibers, detergents, fragrances, paints, film, and food packaging.

This is actually one of two major projects that Sasol is planning to build as the company could invest up to $21 billion in the U.S. What's remarkable is that Sasol is a South African company, so this investment would be one of the largest foreign investments ever made in the U.S. The projects would create 1,200 permanent jobs, 7,000 construction jobs, and more than 50,000 indirect jobs. This is all thanks to the natural gas abundance unlocked by fracking.

American manufacturers like Dow Chemical are investing billions to expand manufacturing capacity in the U.S. Dow Chemical is also planning a new ethane cracker along with three other projects. It sees these projects creating 600 permanent jobs along with 2,000 construction jobs and another 35,000 indirect jobs.

Fertilizing a boom
There are several new fertilizer plants planned, including two expansion projects from CF Industries . Strong and growing nitrogen demand, combined with low-cost natural-gas resources, makes these billion dollar investments by CF Industries possible.

That's also important to the American farmer as more than half of the nitrogen used in the U.S. is currently imported. Natural gas is a key input in creating nitrogen fertilizer, and it's so cheap thanks to fracking that it makes economic sense and cents to manufacture more nitrogen-based fertilizer products in the U.S.

Final thoughts
While fracking gets a bad name in the press, it has single-handedly brought a revival in manufacturing to America. What that means is that not only will the average American spend less on energy each year, but we'll also spend less on energy-intensive products as the manufacturing boom takes hold. Despite the doom-and-gloom headlines we see all the time, the future in America, thanks to fracking, is brighter than ever.

Three ways you can invest in America's energy boom
Fracking has unlocked record oil and natural gas production that is revolutionizing the United States' energy position. It's creating a $100 billion manufacturing boom, and could fuel major profits for your portfolio. To learn more, check our special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

The article Fracking Fueled This $100 Billion Revival in America originally appeared on Fool.com.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool recommends Sasol. The Motley Fool owns shares of CF Industries Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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13 Comments

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Jon

This is the first site on the web where I would really have to say this. Just about every posting so far has been from people who should avail themselves of information not from just one source or reading one newspaper or watching one news channel or whatever. There are many problems in America that could be solved if Americans were not willingly ignorant (choosing to ignore) or purposely kept ignorant by propaganda by the corporations that own the news media and I am not just talking about the right wing but the left wing too. This dumbing down of the American population either from the educational, religious or social stand point has got to be recognized and dealt with so that some of the poorest states and the poorest persons are not voting against theirs and their own children's' economic interest because of lazy and unused thinking that is a God given right to look at problems and issues from many different stand points and not because some stupid talk show host, news anchor, church or religion told you to think a certain way. Opening a person's mind to include new ways of thinking to solve issues and problems is an American value that is under attack by the wealthy elite of both parties and has been since America was founded. I love it when I hear stories of how young people rebelled against family institutional thinking that was destructive or social concepts that were tearing the life out of persons who had innate abilities that screamed within them for true answers on everything from social mores to economic interest; when a person realizes that most of the information that the average American receives is bought and paid for by a corporate entity bent on keeping people ignorant and they choose to break out of that prison of the mind and use their God given mind to make choices that are in theirs and their loves ones interest and the common good, then America will live up to what some call it, "the land of the free and the home of the brave." Any dumb ass can sit on a TV or listen to radio and hear a tirade and get emotionally raped by the lies but it takes a brave person to see through all of that and search and find all the avenues that lead to an informed decision made not only in the interest of self, but also in the interest of all your other living humans who occupy this spaceship called earth.

December 31 2013 at 8:18 AM Report abuse rate up rate down Reply
Don McCoy

The folks trying to bock fracking are the same ones who refer to global warming as "science."

December 28 2013 at 1:37 PM Report abuse rate up rate down Reply
michael.costigan

For years the USA has been the Bread-Basket to feed the world, and also the Spiritual Feeder of the world with the Gospel emanating from our shores. Now God id paying us back with all the riches in oil and gas that He 'providentially' placed under our land. Nothing the libs, obama people can do about it...when God pays...and he always does...we win !!! Many jobs, prosperity, fortunes, businesses built, and economic strength and world position is returning again...and soon the people will vote for conservatives and good money managers again, and we can once again thank God for it all. The American dream can return once again. No wars, peace & prosperity !!! O Glory...Our God is Faithful, let's not abuse it this time.

December 26 2013 at 1:39 PM Report abuse rate up rate down Reply
Mike Alan

Lol liberal idiot wants trucks driving around w solar panels. Fracking has been done for over 60 years. Suddenly it's a polluter? Liberals are idiots

December 26 2013 at 9:16 AM Report abuse +1 rate up rate down Reply
s.dombek

The Oblameo EPA tried their darnedest to stop fracking in Pa., but was unable because the superior court judges could find absolutely NO science that backs up fracking being harmful to the environment. I thought you libtarts were all about Science???

December 22 2013 at 8:55 AM Report abuse +1 rate up rate down Reply
1 reply to s.dombek's comment
Don McCoy

Libtards are all about some weird mixture of superstition and manipulated data which they CALL "science."

December 28 2013 at 1:39 PM Report abuse rate up rate down Reply
josophine_bell

Ha.. you're kidding right? I mean the only reference you use is Energy in Depth? You must be kidding. Fracking is bringing back Manufacturing jobs to America? How pathetic is this article? What's wrong with truck drivers carrying Solar Panels? At least when there's an accident we wno't have carcinogenic residue all over our roads running into our aquifers for 1600 years. Will we? What about Wind Turbines being carried by truck? At least we won't have dirty energy equipment with diesel oozing out the drill rig while they drill for natural gas. How about you do some fact checking before writing a really riduclous article like this? Impacting Public Opinion with this lousy article will never work. Sorry.

December 15 2013 at 2:31 PM Report abuse rate up rate down Reply
1 reply to josophine_bell's comment
Don McCoy

Why not just move to Iran? I think THEY still want to live like cave men...at least, that is when they aren't making nukes.

December 28 2013 at 1:40 PM Report abuse rate up rate down Reply
Go Og

Even the goofy liberals could not hold this back.

December 15 2013 at 4:45 AM Report abuse +1 rate up rate down Reply
ccsroscoe

Toxic Fracking chemicals will permanently pollute ground water forever!

December 09 2013 at 9:29 AM Report abuse rate up rate down Reply
2 replies to ccsroscoe's comment
Go Og

Nah you are thinking about what liberals brains are made of and what is spewing out of their mouths.

December 15 2013 at 4:46 AM Report abuse rate up rate down Reply
1 reply to Go Og's comment
Cameron Loomis

When our ties are cut-off with the rest of the world and all of our soil is ruined, we'll need to address one critical fact - We can't eat our money.

Take a lesson from the dust bowl, buddy - 'We Got Greedy'

December 16 2013 at 5:15 AM Report abuse rate up rate down
Don McCoy

LOL! Like it has for the past 60 years? You been finding it hard to locate potable water? Because you'd be...let's see...carry the five...plus 5...divide by 26...yeah! You'd be the ONLY ONE.

December 28 2013 at 1:42 PM Report abuse rate up rate down Reply