America's Manufacturing Resurgence Is Being fuelled By Cheap Natural Gas

natural gas

This post originally appeared at CBS Moneywatch.

There is one reason the U.S. economy is recovering: Low gas prices. Natural gas, that is. The price is at a 10-year low and expected to stay that way for a while. This glut of inexpensive energy is why so many companies have been moving manufacturing back to the U.S.

Yesterday the price of natural gas fell 2.5 per cent after the government said supplies remain significantly higher than average levels for this time of year. According to the Energy Information Administration, supplies are more than 40 per cent higher than the five-year average. The U.S. is actually a net exporter of natural gas.

The low price is because of two things: A warm winter and a lot of drilling.

Read the whole story at CBS Moneywatch >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at