Geology Reference
In-Depth Information
inject. The result is that blast-furnace costs could be cut by as much as $15 per ton
of hot metal produced. When demand is strong, U.S. Steel produces some 20 mil-
lion tons of steel annually. The company's advantage grows as competitors in Asia
and Europe are forced to pay more for their energy. “It has become clear to me that
the responsible development of our nation's extensive recoverable oil and natural
gas resources has the potential to be the once-in-a-lifetime economic engine that
coal was nearly 200 years ago,” announced U.S. Steel chairman John Surma in a
2012 speech.
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As the tide of natural gas rises, other industries are seeing their boats rise with
it. One might not associate high-tech companies with natural gas; yet a few of
them have leaped on the shale bandwagon. In 2012, Honeywell—known for mak-
ing thermostats, electric motors, and components for nuclear weapons—paid $525
million for a majority stake in Thomas Russell, a provider of equipment for natural
gas processing and treatment. In coming years, Honeywell will offer products that
allow energy companies to remove contaminants from hydrofracked natural gas,
and to recover natural gas liquids used for fuel and in petrochemicals.
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As energy costs dip, companies along the value chain (a series of companies
that work together to deliver products or services to the market) are retrenching;
some that fled the United States for foreign shores are contemplating a return
home. The manufacture of plastic toys by injection molding, for instance, requires
lots of power but minimal labor costs. For now, Chinese factories dominate the
market. However, given the costs of transportation, lengthy supply chains, and oth-
er factors—such as fear of intellectual property theft—the calculation about where
manufacturing takes place is shifting.
According to a study done by scientists at MIT, residential and commercial build-
ings account for 40 percent of America's total energy consumption, in the form of
prices have meant that the cost of heating schools and other government buildings,
often itemized on local tax bills, is falling.
