Jack Kaskey of Bloomberg writes how cheap natural gas is contributing to many facets of our economy, including investments and exports.
“The U.S. economic recovery is gathering strength as cheaper natural gas drives business investment and boosts exports, according to the chief executive officer of Dow Chemical Co. (DOW), the country’s largest chemicals company.
U.S. demand is rising for autos, industrial goods and consumer staples such as packaging, Andrew Liveris said yesterday in an interview at Bloomberg’s headquarters in New York. Dow is running its plants close to capacity because falling gas prices have cut production costs, he said.
Liveris is investing $4 billion in the country over five years to build factories that take advantage of gas prices that are at their lowest in a decade. Cheaper gas is doubly advantageous for U.S. chemical makers, who use it to power their plants and as a raw material for hundreds of products such as polyethylene plastic.
“There are tailwinds, not the least of which is because of the energy competitiveness of this country,” Liveris said. “We see a stronger U.S. economy. It really started last year and is now firmly into this year.”