Could fracking make American Manufacturing competitive?

Manufacturing cost indexIf shoppers are noticing more “Made in America” labels these days, they may have hydraulic fracturing (commonly called “fracking”) to thank.

Despite a raft of bad news for American manufacturing in recent decades, and a persistent migration of jobs from our shores to Asia and Latin America, a new report from the Boston Consulting Group shows that the costs of making things here at home is a negligible 5 percent higher than China. The costs are actually 10 to 20 percent lower than major European exporters.

The BCG report, detailed in a Fortune article, shows that the news gets even better: China’s manufacturing costs are expected to surpass those in the U.S. over the next several years, as wages there rise and productivity here increases.

While global trade and production is a complex organism, the report speculates that cheap energy from fracking may be the single biggest factor driving down manufacturing costs. American companies pay up to 50 percent less for power than their competitors, BCG said.

Here in New Mexico, companies have been fracking in one form or another for some 60 years. Most fracking happens in the San Juan Basin, in the northwest part of the state, and the Permian Basin, located in the southeast part of the state. The industry supports 105,000 jobs and provides $11.2 billion to New Mexico’s gross state product.

http://fortune.com/2015/06/26/fracking-manufacturing-costs/

Southeast New Mexico Oil and Gas Safety Summit

Oil and natural gas field worker watching the sunset.

Date:  Wednesday, July 15, 2015

Time:  8:00-11:00a.m.
(Meet and Greet 7:45-8:00am)

Location:  Lea County Events Center,  5101 N. Lovington Hwy, Hobbs, NM 88240

Cost:  Free

 

TOPICS AND SPEAKERS:

  • 8:00 – 8:10 Welcome – Melissa Barker, NM OSHA, Wally Drangmeister, NMOGA, and Danny Owens, SENM STEPS
  • 8:10 – 9:10 “Changing Attitudes To Improve Safety” – Dr. Randy Gallaway, A Plus Senior Services
  • 9:10 – 10:10 “Driving: Safety Teams of Shattered Dreams” – Krisha Marker, MM Safety, Inc.
  • 10:10 – 10:20 Break
  • 10:20 – 10:45 Round Table Discussions
  • 10:45 – 11:00 Closing Remarks

This event is a cooperative effort between the New Mexico Occupational Health and Safety Bureau (NM OSHA), the New Mexico Oil and Gas Association (NMOGA) and the Southeast New Mexico Service, Transmission, Exploration & Production Safety Network (SENM STEPS). Please join us for this special industry event.

NMBC Energy Summit

On Wednesday, July 1 the first New Mexico Business Coalition Energy Summit will be taking place at the Sheraton Albuquerque Uptown, from 11:30 am to 1:00 pm. Congressman Steve Pearce will be the featured keynote speaker and there will also be a panel of leading experts on energy production in New Mexico. NMOGA is one of the sponsors of the event and our own Vice President and Communications Director, Wally Drangmeister, will be apart of the panel experts.

Some topics that will be addressed include 1.) Where New Mexico fits into the national energy production, 2.) The impact the oil and gas industry has on New Mexico and, 3.) What challenges the industry faces from federal, state, and local sources.

The panelists will be discussing the process of drilling oilrigs in the state and the precautions that oil and gas companies take to minimalize any environmental impacts.

Panelists will also discuss how operating a business in New Mexico compares to surrounding states and the public perception of the oil and gas industry. We will also discuss how oil and gas companies give back to their local communities and the contribution the industry makes to the state’s general operating fund.

Don’t miss this important summit. It is a week away but there is still time to register. Come join the first NMBC Energy Summit in Albuquerque. For more information and to buy tickets, check out: http://nmbizcoalition.org/Events.aspx?calEventId=6c20a6f9e02747c8a3579797279c3335#CalendarContent

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