The Connection Between Hydraulic Fracturing And U.S. Manufacturing
Has the U.S. energy boom helped the country’s manufacturers? An investigative report published last week by The Wall Street Journal gave a resounding yes. The article said the boom “has created big business for American factories supplying drillers with cranes, engines and pipes.”
Specifically, according to data from the U.S. Bureau of Economic Analysis, the oil-and-gas sector purchased $48 billion worth of manufactured products in 2018, four times as much as was purchased in 2009.
Unfortunately, “The boon has left manufacturers more vulnerable to the energy industry’s next slump. Manufacturers have reported sales declines in recent weeks as lower energy prices prompted a slowdown in domestic production growth. The number of new wells in the U.S.—known as the drilling-rig count—fell by 20% in October from last year, hitting a two-year low.”
As a reminder, the Metals Service Center Institute is a member of the Energy Equipment and Infrastructure Alliance, which is working to educate policymakers about the connection between the health of the U.S. energy industry, and the health of the manufacturing sector.