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.