World power swings back to America

The Telegraph ^ | Ambrose Evans-Pritchard

[chuckee]

The American phoenix is slowly rising again. Within five years or so, the US will be well on its way to self-sufficiency in fuel and energy. Manufacturing will have closed the labour gap with China in a clutch of key industries. The current account might even be in surplus.

The making of computers, electrical equipment, machinery, autos and other goods may shift back to the US from China...

Read article http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8844646/World-power-swings-back-to-America.html

[chuckee]

One of those rare positive articles about the prospects for US economic future. Two points of interest that the US domestic production is now supplying 72% of its internal oil demand up from 50% because of Bakken in North Dakota and other reserves and on its way to becoming self sufficient despite the Obama administration. The other point is that with wage inflation in China there are certain industries that are on the cusp of insourcing certain jobs back to the US for a mini manufacturing revival. The right to work states should be the primary beneficiary.

[caww]

They’ve moved the article...nothing there.

[bigbob]

Boston Consulting Group has been writing extensively about this: http://www.bcg.com/media/PressReleaseDetails.aspx?id=tcm:12-88775

Yep, some good news, especially if we get some leaders in DC that have the sense not to screw it up (again).

[lurk]

Job creators are saddled with regulation and taxation, and the government has a bit of a debt problem. Redistribution and political correctness are venom in the system too.

[Soothesayer9]

I’ll believe it when unemployment is at 3%.

Not holding breath.

[BushMeister]

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8844646/World-power-swings-back-to-America.html

[Tax Government]

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8844646/World-power-swings-back-to-America.html

[chuckee]

Are you sure they moved it. I am able to cut and paste the link in my browser and see it.

[chuckee]

“Job creators are saddled with regulation and taxation, and the government has a bit of a debt problem. Redistribution and political correctness are venom in the system too.”

Yup, 2012 is critical particularly the need for a Republican majority in the Senate as well as the Presidency to end the regulatory blockade on job creation

[rbg81]

I’d really like to believe this. However, its difficult to believe that factories will relocate here with creeping Socialism in general + the EPA and Obamacare to contend with.

[AlexW]

Is this out of Fantasy Land, or what?

[the invisib1e hand]

where can we get some of this crack they’re smoking?

[Chode]

self-sufficiency in fuel and energy??? only after the RATS are out of office...

[Last Dakotan]

I’ll believe it when unemployment is at 3%.

3.1% here - of course I'm in North Dakota.

[Last Dakotan]

Ping

[JoenTX]

The divining factor is the cost of energy. Be it electricity or gasoline or natural gas or solar.

We have so many Chines made products in the U.S. right now because it is cheaper for a maker to build there and then ship here. As soon as that simple balance is disrupted, that equation is disrupted as well. As soon as the cost of energy makes it more economical to produce locally with less shipping, then production returns state-side,

It’s not hard. It’s really extremely simple. In production it is cost of labor/cost of energy/cost of regulation. Effectively reduce any two of the three and you win.

[RayChuang88]

Here's the advantages that the USA has over everyone else:

1) Our ground transportation structure--even if much of it needs repair and upgrading--is still second to none in the world, despite the fact we lack high-speed passenger rail except for Amtrak's Northeast Corridor. No other country can move goods back and forth inside its borders like the USA's massive system of railroads and highways.

2) We have the means to effective become totally self-sufficient in energy production within 15 years. If we aggressively pursue more oil, gas and coal production, properly develop wind power in the upper Midwest and solar power in the Southwest and finally put use to our 440,000 tons of thorium-232 reserve in the new liquid fluoride thorium reactor, we could end up not only being self-sufficient in energy production, but become an exporter of oil again.

[txhurl]

The Phoenix rises from the Ashes?

[bigbob]

Since you understand how business decisions are made, suggest you check out the BCG research papers, as they show how the cost structure is changing vis China and the southern (non-union) US. A return to sanity in DC will help, but this trend is occurring largely based on what’s happening in China.

[Praxeologue]

Evans-Prichard's article is wildly incorrect in virtually every statement on U.S. current and future petroleum production. I think the problem is that he doesn't understand the industry, but just shoots from the hip to meet his deadline. He confuses shale gas and shale oil. He massively overstates future production and flags 350,000 bbl/day as significant. Does he mean bbl of oil equivalent in gas? Gas production may replace some coal consumption over a decade or so, but nothing like E-P states. The U.S. is not dependent on Middle East oil, rather Venezualan and Canadian crude. The list goes on. So half of the article is incorrect. It fits with his thesis, though, so that may be the reason.

I'm disappointed with E-P. I have found his work valuable over the years, often exposing what the U.S. MSM would not.

The BCG material that he lifted is largely correct, but I smell a Democrat-induced theme that stimulus spending, money-printing and a weak dollar is good for America because it strengthens domestic manufacturing. You see GM prominently mentioned in the two BCG articles. This will be an Obama re-election theme.

I'm from Missouri on the entire article.