These publications and reports discuss various aspects of shale gas.
Natural Gas: Fueling an American Manufacturing Renaissance
The Dow Chemical Company, June 2012
Summary: Outlines the importance of natural gas to the chemical industry and how Dow is a leader in taking advantage of low prices and growing supply. Policy recommendations to support investment and job growth include avoiding a flurry of liquified natural gas (LNG) exports and regulations that restrict supply.
Shale Gas: Reshaping the US chemical industry
PricewaterhouseCoopers LLP, October 2012
Summary: Decreased cost of energy and raw materials have led to a 33% increase in US ethylene production with $15 billion in investments. Based on the supply chain of ethane, increased production could boost manufacturing in other sectors as chemical prices decrease and innovation spurs new uses of chemical products in manufacturing.
The Great NGL Surge!
Turner Mason & Company, November 2011
Summary: Projects natural gas liquid (NGL) supply will increase 40% over 5 years, and processing and transporting capabilities (some already planned) will follow the trend.
Shale Gas Competitiveness and New U.S. Investment: An Analysis Based on Announced Projects
American Chemistry Council, May 2013
Summary: Details natural gas use in the chemical industry and provides specific economic analysis based on 97 proposed chemical investments totaling $71.7 billion. Estimates 1.2 million temporary direct and indirect jobs and 537,000 permanent jobs created by investments that increase chemical industry output by $66.8 billion (+9%).
Natural Gas in the U.S. Economy: Opportunities for Growth
Michael Ratner & Robert Pirog (Congressional Research Service), November 2012
Keywords: chemical; steel; environment; policy
Summary: Overview of changes in the natural gas market and analysis of opportunities for power generation petrochemicals, fertilizer, steel, transportation, residential and commercial consumption, and imports/exports. Limitations in realizing opportunities include the global market (and the place of US exports), environmental concerns, price and supply uncertainties, and policy options.
Natural Gas Liquids in the Shale Revolution
Al Troner (for the Baker Institute), April 2013
Keywords: chemical; LNG export
Summary: Thorough history and explanation of natural gas liquids (NGL) with a brief mention of manufacturing concerns. Includes supply and demand forecasts, a list of planned NGL investments (ethane crackers and other plants), and push and pull forces on NGL production.
Energy Plan for America
Dow, June 2012
Keywords: chemical; policy
Summary: Outlines Dow’s plan for promoting a sustainable energy future. Policy recommendations for ensuring a reliable supply of natural gas include promoting environmentally responsible drilling, supporting state and local control of regulations, and tapping into all reasonable domestic sources of natural gas.
Natural Gas: Historical Perspective
Natural Gas: From Shortages to Abundance in the United States
Joskow, Paul L. (MIT), May 2013
Keywords: history; policy
Summary: Summary of oil/gas supply and demand in US from oil embargo to shale gas boom, with analysis on economic benefits and environmental challenges of shale gas. Small section on potential benefits to manufacturing (Section VII).
Natural Gas: Economics and Policy Analysis
America’s Energy Resurgence: Sustaining Success, Confronting Challenges
Bipartisan Policy Center’s Strategic Energy Policy Initiative, February 2013
Keywords: energy efficiency; policy
Summary: Comprehensive energy analysis with policy recommendations. Specific recommendations, challenges, and opportunities for natural gas are in Chapter 2, and recommendations for industrial efficiency start on page 86.
Oil and Natural Gas: Back to the future
Donald A. Norman (MAPI), August 2012
Keywords: all industry; LNG export; policy
Summary: Policy analysis for economic activity around oil and natural gas, including production and consumption patterns. Lays out how the economic and political climate have become more positive recently and predicts continued economic growth which will translate to growth in the manufacturing sector (directly related to shale gas drilling and indirectly via general economic growth).
The “Shale Gas Revolution”: Developments and Changes
Paul Stevens (Chatham House), August 2012
Keywords: policy; supply and demand; environmental concerns
Summary: Describes what has changed in policy, supply, demand, and outlook for shale gas in the U.S. and internationally, specifically in Europe. Two major concerns for further growth of shale gas in the U.S. are low prices and slowed growth in new wells along with environmental concerns fueling public opposition to fracking.
Natural Gas: Supply and Usage
Annual Energy Outlook 2013
U.S. Energy Information Administration, April 2013
Keywords: reserves; demand
Summary: Most current (2013) projections of energy consumption, production, and economic trends through 2040 in multiple scenarios. With higher shale gas production, projections put the U.S. as a net exporter of natural gas by 2019, and the industrial sector increases use of natural gas for power generation.
Manufacturing Energy Consumption Survey 2010
U.S. Energy Information Administration, 2013
Keywords: all industry; demand and usage
Summary: Most current (2010) data on energy usage in manufacturing sectors shows 17% decrease in overall energy consumption, following the decreasing trend since 1998. Overall natural gas consumption also fell between 2006 and 2010 but not as much as the decline between 2002 and 2006.
Shale Gas: A Game-Changer for American Manufacturing
Mark Barteau & Sridhar Kota, July 2014
Keywords: manufacturing; energy policy
Summary: The American shale gas boom has the potential to revitalize domestic manufacturing, and a new report from a University of Michigan-led panel recommends steps to make that happen in a responsible manner.
Those steps include increasing public trust of hydraulic fracturing; monitoring and reducing methane emissions; and using shale gas profits to advance renewable energy technologies, among other efforts.
The report, "Shale Gas: A Game-Changer for U.S. Manufacturing", summarizes and expands on the U-M-sponsored daylong conference of the same name held this spring in Washington, D.C. In addition to U-M faculty members, representatives from industry, environmental organizations and government agencies participated.
Report to the President on Ensuring American Leadership in Advanced Manufacturing
President’s Council of Advisors on Science and Technology, June 2011
Keywords: advanced manufacturing
Summary: PCAST focuses in this report on advanced manufacturing, a family of activities that (a) depend on the use and coordination of information, automation, computation, software, sensing, and networking, and/or (b) make use of cutting edge materials and emerging capabilities enabled by the physical and biological sciences, for example nanotechnology, chemistry, and biology. This involves both new ways to manufacture existing products, and especially the manufacture of new products emerging from new advanced technologies. We believe that advanced manufacturing provides the path forward to revitalizing U.S. leadership in manufacturing, and will best support economic productivity and ongoing knowledge production and innovation in the Nation.
Energy Trends in Selected Manufacturing Sectors: Opportunities and Challenges for Environmentally Preferable Energy Outcomes
US EPA (prepared by ICF International), March 2007
Keywords: alumina/aluminum, cement, chemical, food, forest products, iron/steel, metal casting, metal finishing, motor vehicles, motor vehicle parts, petroleum refining, ship building and repair; environment; energy usage
Summary: Old report (2007) on manufacturing in in alumina/aluminum, cement, chemical, food, forest products, iron/steel, metal casting, metal finishing, motor vehicles, motor vehicle parts, petroleum refining, ship building and repair. Breaks down natural gas usage in 2002 and looks specifically at criteria air pollutants and carbon dioxide emissions for each industry. Natural gas scenarios are based on data through 2005.
Shale Gas: A Renaissance in US Manufacturing?
PrivewaterhouseCoopers LLP, December 2011
Keywords: all industries
Summary: Economic analysis of shale gas development on US manufacturing. The high development, low price scenario predicts $11.6 billion in energy savings and one million new jobs for manufacturers by 2025.
Made in America, Again: Why Manufacturing will return to the US
Boston Consulting Group, August 2011
Keywords: all industry
Summary: Outlines all the factors that could contribute to moving manufacturing back to the US (e.g., labor costs), including energy costs (but not specifically natural gas).
Tech Effect: How Innovation in Oil and Gas Exploration Is Spurring the U.S. Economy
American Clean Skies Foundation, October 2012
Source: Interest Group
Keywords: economic growth and jobs; all industry; LNG export
Summary: Economic analysis of direct, indirect, and induced effects of natural gas development. Highlights specific industries like ammonia, ethylene, methanol, and glass and gives state-by-state economic predictions in the appendix.
The American Shale Gas Revolution: Fundamental Winners and Losers
Marcus V. McGregor (Conning Corporation), April 2012
Keywords: all industry
Summary: Identifies industries and companies who will benefit from and be hurt by shale gas expansion. The chemical industry and energy-intensive building materials producers (e.g., cement) are expected to benefit from increased shale gas development while some utilities and mining sectors will be hurt by lower natural gas prices.
Shale Gas, Competitiveness and New U.S. Investment: A Case Study of Eight Manufacturing Industries
American Chemistry Council, May 2012
Keywords: paper, chemicals, plastic/rubber, glass, iron/steel, aluminum, foundries, fabricated metal products
Summary: Projects benefits from shale gas for eight industries: paper, chemicals, plastic/rubber, glass, iron/steel, aluminum, foundries,and fabricated metal products. Predicts job growth and additional output between 2015-2020, with a total of 1.2 million jobs (200,000 new direct jobs) created through expanded production in these industries.
Macroeconomic Impacts of LNG Exports from the United States
NERA Economic Consulting Group, December 2012
Keywords: LNG export
Summary: Macroeconomic study of liquified natural gas (LNG) exports commissioned by the U.S. Energy Information Administration (EIA). Concludes “benefits that come from export expansion more than outweigh the losses from reduced capital and wage income to U.S. consumers.” This study sparked backlash from manufacturing industries because it relies on reportedly outdated data and false assumptions.
Effect of Increased Natural Gas Exports on Domestic Energy Markets
U.S. Energy Information Administration, January 2012
Keywords: LNG export
Summary: Economic analysis of liquified natural gas (LNG) exports (not macroeconomic considerations). Increased natural gas exports lead to higher domestic natural gas prices, increased domestic natural gas production, reduced domestic natural gas consumption, and increased natural gas imports from Canada via pipeline.
Economic and Environmental Impacts of Increased US Exports of Natural Gas
Kemal Sarica & Wallace E. Tyner, 2013
Keywords: LNG export
Summary: Examines likely economic and environmental outcome of increased liquified natural gas (LNG) exports. Major findings from the model are a slight decrease in GDP and increase in greenhouse gas emissions with increased exports.
Careful What You Wish For: The Shale Gas Revolution and Natural Gas Exports
Frank A. Wolak (Standford Institute for Economic Policy Research), November 2012
Keywords: LNG export; policy; domestic use
Summary: Concludes that the US would be better off putting natural gas towards electrical and transportation developments rather than exporting. Liquified natural gas (LNG) infrastructure will take years to develop and other countries may catch up with drilling technology by then, making exports less profitable for the US.
US Natural Gas Exports: New Opportunities, Uncertain Outcomes
Michael Ratner, Paul W. Parfomak, Ian F. Fergusson, Linda Luther (Congressional Research Service), April 2013
Keywords: LNG export; policy
Summary: Walks through the rise of liquified natural gas (LNG) export permits and summarizes permit approval process. Discusses the EIA and NERA economic analyses of exports and reactions to the report. Concludes that export is one option for surplus natural gas but notes uncertainties in the markets and predictions.
Comparison of Analysis of Natural Gas Export Impacts
Wallace E. Tyner, January 2013
Keywords: LNG export; chemical; environment
Summary: Compares NERA methods and results to a Purdue study of liquified natural gas (LNG) exports. The main conclusion is that both the benefits predicted by NERA and loses predicted by Purdue are negligible but different enough to encourage further study and caution in moving forward with exports. The Purdue study takes into account more environmental effects that the NERA study and shows higher greenhouse gas emissions with exports.
U.S. LNG Exports: Impacts on Energy Markets and the Economy
ICF International, May 2013
Keywords: LNG export
Summary: Economic analysis of liquified natural gas (LNG) exports that finds higher GDP growth than reported in the NERA study. Job gains estimated between 73,100-452,300 across all three scenarios.
New Dynamics of the US Natural Gas Market
Bipartisan Policy Center, May 2013
Keywords: LNG export; chemical
Summary: Economic analysis with overview of key supply and demand drivers. Findings show enough natural gas supply to meet needs, including manufacturing and exports, and increased demand for natural gas in the industrial sector, contingent on infrastructure upgrades.
US LNG Exports - Truth and Consequence
Kenneth B. Medlock III (Baker Institute), August 2012
Keywords: LNG export
Summary: Economic analysis of liquified natural gas (LNG) based on global market dynamics that finds reasonably low impact on domestic prices with exports. Long-term export volumes are not expected to be large.
Strategy for Natural Gas Exports
Michael Levi (The Hamilton Project), June 2012
Source: Interest Group
Keywords: LNG export; policy; environment
Summary: Policy analysis on liquified natural gas (LNG) exports based on macroeconomic, distributional, oil security, climate change, foreign and trade policy, and local environment considerations. Concludes benefits of exports outweigh cost of constraining them as long as environmental protection is in place.
Liquid Markets: Assessing the Case for US Exports of Liquefied Natural Gas (Policy Brief 12-01)
Charlers Ebinger, Kevin Massy, Govinda Avasarala (Brookings Institute), May 2012
Keywords: LNG export; chemical; policy; reserves
Summary: Feasibility study on liquified natural gas (LNG) exports. Concludes that exports are technically feasible, will not be as detrimental to chemical feedstocks as has been claimed, and could bring modest economic benefits to the U.S. Includes good summary of shale gas reserves, the trouble with estimates, and the whole story of LNG exports.
Hydraulic Fracturing in Michigan
Hydraulic Fracturing in Michigan Technical Report - Overview and Glossary
Graham Sustainability Institute, University of Michigan, September 2013
Keywords: Hydraulic Fracturing; Michigan
Summary: Through a research-based partnership of University of Michigan (U-M) institutes, centers, and faculty, we are holistically evaluating the impacts of hydraulic fracturing in Michigan. Hydraulic fracturing has the potential to touch issues that all Michigan residents care about – drinking water, air quality, Great Lakes health, water supply, local land use, energy security, economic growth, tourism, and natural resource protection. This project’s technical analysis, stakeholder engagement, and proposed approaches to minimize negative impacts will be important outcomes that guide future decision making on this issue and hopefully help state decision makers avoid some of the pitfalls encountered in other states.