The Shale Gas Revolution and the Philippines

I believe that the Shale Gas Revolution and reducing energy price are good to Philippine economy.

In comparison to China, the Philippines failed to develop manufacturing industry because of lack of infrastructure. The Philippines has developed service industry like call-centers and English language schools.

Service industries in the Philippines requires educated human resources. However, employment for many uneducated people is insufficient. It can be said “anemic”.

I hope Philippine politicians will make the use of the chance that will come with the US economy flourishing by the Shale Gas Revolution. Filipinos can get jobs which are contracted with American customers.

The Shale Gas Revolution and China

Shale is a kind of rock which exists in deep underground and it contains natural gas. No one could ever get gas from shale before, but Americans have developed the way to obtain it. The US will use the gas and quit importing crude oil.

This is what you called, “The Shale Gas Revolution”. Shale gas reduces energy prices. There are three forecast about the US and China economy correlated with it.

One sees that reducing energy price removes restraint on economic growth of China. China can get energy at low price and raise their economy. It will also raise America’s economy as well.

Another sees that the reducing energy price makes manufacturing industry grow again in the US. It means that manufacturing industry will come back to the US from China. China’ s economy will go bust.

Other sees the Shale Gas Revolution overestimated its role. Jim Rogers said that it won’t affect the world economy so much.

It’s hard to know which opinion is right. Especially, I want to know about momentum of China’s economy. I think Chinese economy will rise by the Shale Gas Revolution because Chinese politicians seems to prepare for it. They are committed to a consumption-led economy. I believe it is a good opportunity to invest in China.