As we all know, cheap energy has played and will continue to play an important role in economic growth. US natural gas prices have fallen as shale gas deliveries started to enter the market. Prior to that, the US would have become a major importer of liquefied natural gas (LNG). However, the recent surge in US shale gas production has turned the tables, and the US may become a major LNG exporter.
MetalMiner, in conjunction with the Institute of Supply Management (ISM), is conducting a snap survey to better understand the potential impact of American LNG exports on energy prices and the manufacturing sector overall. The survey (developed into a larger study) seeks to better quantify the importance of lower natural gas prices on sourcing activities, as well as capex and a US manufacturing renaissance in broader terms.
Some energy experts, including Commodity/PROcurement EDGE speaker Mark Pruitt, already believe natural gas prices will rise due to a number of drivers. These include international markets (LNG exports), an expanding domestic market particularly for transportation, electricity generation, plastics and chemical increased production, as well as direct price pressures (demand will increase and hence prices will as well).
Instead of analyzing economic models in a vacuum, this snap poll will allow US manufacturers to weigh in on the potential impacts. How important a factor is energy in your cost equation, and what kind of impact do you think exporting LNG will have on your company’s cost structure?
MetalMiner will release the findings of this survey and provide a detailed report discussing the results. Participants have the option of receiving an advance copy of the report. If this survey takes you more than five minutes, let us know and we’ll send you a lox bagel.
So please click here to fill out the survey!