Cheap, reliable natural gas has the potential to spur construction of plants for chemicals, fertilizers, steel and other industries which will continue to grow our economy. For example, two projects in my home state of Louisiana are currently being developed due to the cheap price of natural gas. A plant to be built by Nucor will soon begin to convert iron ore pellets and natural gas into iron capable of being used in steel mills. Another project, by Dow Chemicals, seeks to invest $5 Billion in the Gulf Coast Region to build new plants, and upgrade or reactivate others. The low price of natural gas is extremely attractive to these companies and will result in high paying manufacturing jobs for US citizens.
The availability of natural gas has caused a sharp reduction in price for electricity generation which in turn is lowering costs on both residential and commercial power bills. The five large regional utilities that serve Pennsylvania and New Jersey have reduced their gas prices on bills by 37 to 52 percent since December 1, 2008 as supply has risen and costs have declined. The reduction in price has meant annual savings of hundreds of dollars to consumers in those areas. These costs savings are real and allow hard-working Americans to have more money to spend after accounting for their basic necessities. Low electricity prices are also allowing the United States to be more competitive in the global marketplace. A Brazilian firm, Santana Textiles, is currently building a $180 million denim plant in Texas as opposed to Mexico after citing electricity costs up to 30 percent lower in the US due to the widespread availability of cheaper, natural gas-based electricity.
The economic successes of domestic gas development and fracking are plentiful. A low cost, reliable energy supply is what American manufacturers need to compete in the global marketplace and create jobs here in the US. Those that seek to limit the success of natural gas as a way to jumpstart the “green” economy, or who seek to stop fracking through overregulation, risk cutting off energy resources our economy demands and eliminating the subsequent jobs so many Americas need.
The natural gas revolution over the past five years has seen great success in an economy where productivity still lags. Supporting this development by allowing industry and states to lead is the best way forward to encourage job growth and investment. Our country’s economic opportunity will not lie with artificially higher energy prices to support the development of a “green” economy; it will be in the promise of low, stable energy prices that encourage manufacturers to continue investing in the American worker.
Rep. Bill Cassidy (R-La.), a physician, serves as an assistant whip for the House Republican Conference and is a member of the Energy and Commerce Committee.