European industry flocks to U.S. to take advantage of cheaper gas
April 2, 2013
The gap in natural gas prices has opened quickly, leaving companies that make investment decisions years in advance scrambling to catch up. As recently as 2007, U.S. natural gas prices were only about 20 percent lower than Europe's, not enough to fundamentally reshape markets.
But with the boom in U.S. shale gas production, driven largely by fracking, U.S. prices last year dropped to a quarter of the European price. Most analysts expect that U.S. prices will stay low even if they rebound from their rock-bottom levels, providing a boon to all U.S.-based manufacturing through lower electricity prices.
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