The U.S. energy industry has been growing steadily since the 2008 recession, and recent statistics about natural gas exports fueling Mexican manufacturing have the entire industry abuzz. As many as seven new pipelines from Texas to Arizona are expected to carry American natural gas to markets in Mexico, with one new pipeline expected to start in September 2014.
Pipelines already carry 2 billion cubic feet per day across the border as Mexican manufacturing booms. Exports have risen 11 percent in 2014 alone, feeding industries such as electricity, automobile and petrochemical production in Mexico. These industries have more than doubled their output from 2009 to 2014, and natural gas is expensive south of the border. To alleviate these problems, Mexican companies signed deals with American oil firms to increase natural gas exports.
More economic activity, especially with new technologies extracting Texas shale oil, means more high-paying jobs for Americans in the gas and oil sectors of the energy industry. The industry has seen growth for at least four years straight, and new projects require engineers, construction workers, manufacturing jobs and project managers.
As the global economy recovers, the need for energy has increased demand in the United States for skilled workers. This trend is expected to continue for the next two years as graduates with relevant degrees, even with minimal job experience, are expected to find immediate employment. The industry as a whole has an employment rate of less than 5 percent.
Energy prices in the United States are lower, so companies fill the gap by sending natural gas exports to other countries. The easiest way to do that is through pipelines since shipping liquefied natural gas in trains, trucks and boats costs three times as much as pipeline transportation. Plus, building pipelines to Mexico is a no-brainer for refineries in southern states that already have the necessary infrastructure to handle such projects.
Mexico plans to eventually start its own gas production, but that prospect is still farther in the future than finished pipeline projects. American firms are now taking advantage of Mexico's demand by sending more natural gas exports before the boom levels off. Manufacturing jobs in the American oil industry are still a big deal because relevant companies can help build Mexico's fledgling energy production infrastructure. When economic ties between Mexico and the United States diversify, everyone wins despite cheaper labor south of the border. Natural gas exports are just one key to ongoing stabilization between the two neighboring economies.
The United States energy industry has seen unprecedented growth due to new technologies in shale oil extraction, greater needs in developing countries and more supplies available to companies. Natural gas exports continue to feed the cycle that starts with a booming Mexican manufacturing industry and leads to better prosperity in the United States with smaller trade deficits and cheaper consumer goods.
Photo courtesy of supakitmod at FreeDigitalPhotos.net
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