As per the reports, in US, the companies like NRG Energy, Toshiba and many more players all along the supply chain were positioning themselves for the Nuclear Renaissance of cheap and abundant Nuclear energy for the next 50 years. But, the number of jobs created is higher in Oil Renaissance as compared to a Nuclear Renaissance. Nuclear projects are just not scalable due to the regulation, lead times for components, inspection, build times, and many more constraints as compared to oil projects which are scalable.
The report say that, US will have the cheapest energy costs compared to any part of the world for starting a business with plenty of natural gas, oil and petroleum products for the next decade at a low and stable price. A new Renaissance in the oil market is made, not just in the US, but globally as well. At present the cost of oil is $45 a barrel and $2 a gallon gas.
In this new era, business sectors such as retail, entertainment, transportation, and global travel will benefit because of the huge change in the oil industry.
Reasons for the growth of U.S Oil Market
According to the reports, in U.S because of the free market in the last 10 years, the oil prices were raised on its own without government subsidies, due to which it will be really tough for the alternative energy folks over the next 5 years as those government subsidies wind down.
Due to the technology changes in oil industry such as the advances made by the medical community which includes endoscopic procedures and heart surgery techniques applied to the oil industry which costs less, will drive for the high growth in U.S oil industry.
The Oil industry is larger than natural gas industry. It is much more scalable from a cost standpoint as compared to natural gas. The size of the industry and scalability means that the oil industry can continue and be highly profitable even with much lower oil prices.
Therefore the lower utilization for commodities by China is another factor that will put less pressure on Oil and other commodities over the next 5 to 10 years.
Oil and commodity projects are going to go full stream because of storage facilities upgradation inspite of the oil price due to sunk costs, it will provide more efficient operations, job creation, and overall profitability.