Up until now Steubenville, Ohio was known to a few old timers as the hometown of Dean Martin and Jimmy "the Greek" Snyder. Occasionally it would make headlines with stories of vice and political corruption. Once known in its glory days as "little Chicago" because of the hustle and political corruption it is now taking on the unlikely moniker of "little Saudi Arabia". Steubenville is making the national news for its rapidly falling unemployment, driven by energy production not by "green jobs" or statistical legerdemain. Unemployment peaked at an astounding 15 percent in 2009 but some now predict if it can keep its present rate of job growth that by April every adult in Steubenville could be working. Steubenville sits atop both the Marcellus and Utica shale formations both known to be rich in natural gas but encased in hardened stone and impossible to extract. Through the new technologies of hydraulic fracturing and horizontal drilling extraction is possible and Steubenville is ready.
This blog has repeatedly posted reports of oil and gas booms. Both the impending booms in Ohio and Pennsylvania and the existent boom in North Dakota foreshadow the return of cheap energy. Yes, cheaper gasoline and smaller heating bills are in the offing but they are mere sideshows to the manufacturing boom that will be visited on the so called rust belt. Manufacturing accounts for one third of energy consumption in the United States. As energy prices decline the nation's manufacturers become more competitive in international markets. In addition to energy, oil and gas are feedstock in the manufacturing of plastics, fertilizers, and pharmaceuticals. The present energy boom is paving the way for an industrial Renaissance.
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