Europe risks losing 30 million jobs due to US shale
Manufacturers of petrochemicals, aluminum, fertilizers and plastics are leaving Europe to take advantage of booming US production of natural gas from shale rock formations, the IEA says.
By PRIYANKA SHARMA and LANANH NGUYEN
The US shale-gas boom is placing 30 million jobs at risk in
Europe as companies with greater reliance on energy contend
with higher fuel prices than their American counterparts, the
International Energy Agency said.
Manufacturers of petrochemicals
fertilizers and plastics are leaving Europe
to take advantage of
booming US production of natural gas from shale rock
formations, Fatih Birol, chief economist for the
International Energy Agency, a Paris-based adviser to 29
nations, said at a conference in London.
are moving out, Birol
said. Thirty million jobs are in danger.
The US has become the worlds largest producer of oil
and gas as hydraulic fracturing and horizontal drilling help
producers extract resources from shale rock. The
countrys refineries processed a record volume of crude
last week as plants took advantage of cheaper domestic
Chemical makers from Germanys BASF to Brazils
Braskem plan to invest as much as $72 billion in US plants to
take advantage of low-cost natural gas feedstock
West Texas Intermediate crude traded at a discount of
$5.85/bbl to European benchmark Brent at 5:43 p.m. on the ICE
Futures Europe exchange in London. US August natural gas
futures traded for $3.96/MMBtu on the New York Mercantile
Exchange, compared with $6.49/MMBtu for the equivalent UK
contract on ICE in London.
US refineries are competing for market share and benefiting
from margins that exceed those of Europe
an competitors by as much as
$10/bbl because of cheaper crude, Hermes Commodities said in