Shale Development Spurs Steel Industry
Wednesday, January 2, 2013
According to the Pittsburgh Post-Gazette, the shale gas revolution is benefiting more than the pockets of landowners. The promise of low natural gas prices is attracting investment in the U.S. steel industry.
Read it:
“Austrian steelmaker Voestalpine AG said Dec. 19 it may construct a 500 million-euro ($661 million) factory in the U.S. to benefit from cheap gas. Nucor Corp., the most valuable U.S. steelmaker, plans to start up a $750 million Louisiana project in mid-2013. They’re among at least five U.S. plants under consideration or being built that would use gas instead of coal to purify iron ore, the main ingredient in steel.”
This is great news for a U.S. industry that’s seen a 3.4 percent decline in production since 2008. Slowing domestic demand, Chinese imports and depressed prices have put the U.S. steel industry on the ropes
Steel production isn’t the only industry getting a boost from cheap natural gas prices, Forbes reported the chemical industry is also benefiting from lower natural gas prices.
2013 could be a great year for producers and consumers, if natural gas prices remain low (they should thanks to increased production).
» Via: Pittsburgh Post-Gazette › Shale-gas revolution spurs wave of new U.S. steel plants
Leave a Comment
Marcellus & Utica Shale Well Map
Additional Shale Maps
Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.