Tags: Recchi | shale | boom | economy

Eni’s Recchi: Shale Gas Boom to Transform US Economy

Tuesday, 18 Dec 2012 08:03 AM

By Michael Kling

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The U.S. shale gas boom is changing the American economy as well as the industry dynamics in Europe and Asia, said Giuseppe Recchi, chairman of Eni, an Italian oil and gas company.

"This shale gas, fracking economy … is changing the dynamics of the gas business in Europe and Asia," Recchi told CNBC.

Cheaper natural gas will bring back energy-intensive manufacturing to the United States, Recchi said, noting that the boom is similar to the commerce revolution prompted by the Internet.

Editor's Note: Prophetic Economist Warns: “It’s Curtains for America.” See Evidence.

"A lot of global brands are bringing back this capacity to the U.S., which creates jobs."

Eni, the biggest oil company in Africa, made a major gas find in Mozambique. The reserve has enough gas to meet the consumption of Italy for 25 years, he told CNBC.

Manufacturers say they will invest over $90 billion in U.S. businesses that can use cheaper natural gas, according to the Financial Times. Petrochemicals, fuel, fertilizer and steel industries stand to benefit.

"This revolution is creating great opportunities to increase manufacturing capability, and has tremendous potential for economic impact and job creation,” Greg Garland, chief executive of Phillips 66, told the Financial Times.

Domestic prices might rise if the industry exports the gas as liquefied natural gas, some caution. However, a U.S. Energy Department report predicts that even unrestricted liquefied natural gas exports would only modestly impact prices at home, according to the Financial Times.

Editor's Note: Prophetic Economist Warns: “It’s Curtains for America.” See Evidence.

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