American Gas Foundation and Center for Strategic and International Studies Report Shows Natural Gas is Critical for U.S. Manufacturing Competitiveness
WASHINGTON, D.C. – A new report unveiled today from the Center for Strategic and International Studies (CSIS) with support from the American Gas Foundation indicates that natural gas will play an increasingly critical role in fueling and maintaining the competitiveness of U.S. manufacturing, and advanced manufacturing, particularly as energy demand continues to rise. The report, conducted by CSIS and funded by the American Gas Foundation, performed independent and novel research on what recent trends imply for the strategic use of natural gas resources to support manufacturing and maintain energy security along pathways to a low-carbon economy.
“Having infrastructure in place where and when needed is crucial if government support and business investments are to catalyze reindustrialization that strengthens U.S. leadership in strategic industries and manufacturing competitiveness in the global market, where carbon-intensity is under increased scrutiny… As the world moves toward net-zero emissions, how much CO2 emissions companies and industries produce will affect their competitiveness,” reads the report. “Utilities in states attracting manufacturing investment are re-elevating natural gas in resource planning… Natural gas—including hydrogen-capable natural gas combustion turbines—will be a means to ensure reliability while expanding renewables and energy storage resources.”
Companies deciding where to site factories for everything from batteries, to semiconductors to fertilizer prioritize affordable energy, with a premium placed on the reliability of supply. The United States is the world’s largest producer of natural gas and enjoys prices approximately one-fifth of what consumers in Europe are obliged to pay. This has resulted in significant capital investments by companies that prioritize reliable, low-cost energy for their operations – a process only accelerated by the decline in European industry resulting from high prices following the Russian invasion of Ukraine. Furthermore, the carbon advantage of U.S. manufacturing offers a compelling benefit as the world works to reduce emissions. For example, CSIS noted a study of steel industry emissions from the top-producing countries and found that U.S. production is one of the least carbon-intensive, while China ranked last.
The report continues, “Maintaining economic competitiveness over higher-carbon manufacturers such as China and narrowing the intensity gap with Europe will require emissions reduction efforts throughout supply chains. The United States needs policies that help unlock the strategic value of natural gas to reestablish its industrial competitiveness while furthering decarbonization.”
“To effectively and successfully compete on the global economic stage when facing countries like China – and others – the U.S. must deploy all its advantages, including our energy advantage,” said AGA President and CEO Karen Harbert. “As we look at natural gas, we want to onshore energy intensive industries, we want to create new strategic industries, and we want to accelerate advanced manufacturing. There is a growing consensus from across the spectrum… on the immediate and persistent need for more energy to fuel this imperative for more advanced manufacturing and the renaissance that will come with it.”
The CSIS report makes it clear that American natural gas will be a critical part of any successful effort to reinvigorate American manufacturing and to compete in the 21st century – and that doing so is absolutely vital to our national security. Read the full report here.