U.S. is becoming top low cost energy destination for big business

[Jordan]

http://finance.yahoo.com/blogs/break...131034202.html



"I think the real story is that the U.S. is likely going to be the low cost center of energy outside of the Middle East," Saut says in the attached video. "But who wants to build a plant there?"

Further supporting this on-shoring fad, Saut says, is the reality that oil prices are set to come down next year to around $65/barrel, as well as the benefit of historically low inflation and borrowing costs. The combined effect of all of this is leading to increased use of robotics and automation and he says "there's no incentive to build a plant in China, you don't need to go to the low cost labor provider."

Instead he predicts businesses will look to build new plants ''where you have the lowest cost of energy, which is very likely going to be the U.S. over the next ten years, so I am all about the re-industrialization theme."

This bodes well for American manufacturing in a competitive environment. Manufacturing, manufacturing jobs, and ancillary jobs are going to come back to the US as the cost of land, labor, and energy in China and other offshoring destinations becomes more expensive. America's vast natural gas fields are putting us back on track.

All is well in the world. So long as politicians do the right thing and don't get in the way of fracking technologies, America is set up for years upon years of job growth in high-paying manufacturing centers.

[Seraphim]

3 words:

Political. Red. Tape.

[Steven Douglas]

All is well in the world. So long as politicians do the right thing and don't get in the way of fracking technologies, America is set up for years upon years of job growth in high-paying manufacturing centers.

Yeah, pay no attention to that nearly invisible but utterly commerce-choking web that will siphon away all the erstwhile economic advantages of low energy costs, in a way that is no net advantage at all (except perhaps as advantage to the spiders in the "net"), let alone a zero sum game, and in a market that is anything but free.

"All is well in the world. Come into our web, said the socialist spider to the capitalist fly."