Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Europe Risks Losing 30 Million Jobs to U.S. Shale Boom

July 17 (Bloomberg) -- The U.S. shale-gas boom is placing 30 million jobs at risk in Europe as companies with greater reliance on energy contend with higher fuel prices than their American counterparts, the International Energy Agency said.

Manufacturers of petrochemicals, aluminum, fertilizers and plastics are leaving Europe to take advantage of booming U.S. production of natural gas from shale rock formations, Fatih Birol, chief economist for the International Energy Agency, a Paris-based adviser to 29 nations, said at a conference in London today.

“Many petrochemicals companies in central Europe are moving out,” Birol said. “Thirty million jobs are in danger.”

The U.S. has become the world’s largest producer of oil and gas as hydraulic fracturing and horizontal drilling help producers extract resources from shale rock. The country’s refineries processed a record volume of crude last week as plants took advantage of cheaper domestic crudes. Chemical makers from Germany’s BASF SE to Brazil’s Braskem SA plan to invest as much as $72 billion in U.S. plants to take advantage of low-cost natural gas feedstock.

West Texas Intermediate crude traded at a discount of $5.85 a barrel to European benchmark Brent at 5:43 p.m. on the ICE Futures Europe exchange in London. U.S. August natural gas futures traded for $3.96 per million British thermal units on the New York Mercantile Exchange, compared with $6.49/MMBtu for the equivalent U.K. contract on ICE in London.

U.S. refineries are competing for market share and benefiting from margins that exceed those of European competitors by as much as $10 a barrel because of cheaper crude, Hermes Commodities said in a report today.

To contact the reporters on this story: Priyanka Sharma in London at psharma142@bloomberg.net; Lananh Nguyen in London at lnguyen35@bloomberg.net

To contact the editors responsible for this story: Alaric Nightingale at anightingal1@bloomberg.net James Herron

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.