With the US shale gas boom in full effect, it is currently leaving no prisoners in its wake. Its global impact is starting to be felt in many other industries, causing more and more businesses and their supply chain managers to take notice. The United States relies on shale gas for approximately 44 percent of its natural gas production. Moreover, as energy companies continue to run cost analysis and logistics scenarios, it is becoming more evident that the some shale industry is creating a ripple effect that can be felt in all economic sectors.
High tech industries can benefit in a variety of ways from the shale gas industry. They can sign up to be a supplier or they can be a contributor to its development. Shale manufacturing technology is rapidly advancing, and energy producers are starting to recognize that their systems do not currently enable them to keep up with the demands of the industry.
Shale gas is a game changer no matter how you look at it. It is an abundant and low-cost energy source that is making it easier for businesses to modify their supply chain infrastructures and reduce their production costs. As onshoring opportunities in the manufacturing industry continue to increase, so will opportunities in the import and export sectors of the transportation industry.
Of course, one cannot forget to look at other sectors of the economy. For instance, the electronics manufacturing industry could see some revitalization since there is an increasing need for more sustainable technology. The electronics industry can also enjoy the benefits of lower production costs, thus shortening its supply chain.
As the transportation and logistics industries increase their dependence on shale gas, the lower the overall costs for shale gas export and import will go.
Other ways that the logistics and transportation sectors can benefit include:
- Increased operational efficiency
- Optimized value
- Real-time delivery coordination
- Evolution of current processes
- Collaborative initiatives across different sectors
- Increased demand and supply
These benefits can create a trickle-down effect that increases revenue and sustainability.
The Political Effect
With all of the obvious benefits that shale gas brings to the US, activist activity against fracking is starting to pick up more steam. With New York’s decision to ban fracking, came a blow that could very well start a domino effect in the rest of the world, not just in the United States. While New York’s decision appears to be a victory for fracking activists everywhere and could shape the face of future battles, its decision could also have a significant impact on some local economies, such as Pennsylvania and its Marcellus and Utica shale communities, since part of their formation exists in New York.
Although anti-hydraulic fracturing opponents have a steep climb ahead of them, they are drawing more global attention to the negative side of the industry. To them, the environmental consequences do not outweigh the advantages and new life that the U.S. energy boom has given to some of the nation’s hardest hit communities from the recent depression. While there is growing environmental concern, it does not seem to be enough to stop other shale driven communities from moving forward with shale development and investments.