IHS Study: Unconventional Energy Making U.S. Chemical Industry More Competitive

The chemical industry will gain a “profound and sustained” advantage that is “expected to last for decades,” concludes an IHS report on unconventional oil and gas. Unconventional energy is making the U.S. more competitive due to lower costs for energy, electricity and raw materials, IHS reports.

The shift is “particularly pronounced in energy-intensive industries, such as chemicals,” according to the report.

Report findings from the IHS study include:

  • Unconventional energy will help lead to as much as $100 billion in new investment in U.S. chemical and plastics facilities by 2025
  • Chemical industry capacity will grow by almost 89 million tons by 2025
  • More than $51 billion in chemical industry output will be added to the economy by 2025
  • New U.S. jobs related to chemical industry activity will grow to almost 318,000 by 2025

Robust supplies of NGLs, especially ethane, are key to the trend.  Natural gas liquids (NGLs) production will reach 3.8 million barrels per day by 2020, double the current levels, according to a study released by IHS. NGLs are the principal feedstock for basic chemical and plastics in the U.S., while companies overseas mostly use naphtha, which is oil-based. 

An American Chemistry Council study found that investment is already underway, with dozens of chemical companies are planning shale-related projects.  As of this month, 126 projects representing $84 billion in capital investment has been announced – 54 percent of which is foreign direct investment in the U.S.

IHS cautioned, however, that governmental policies could limit the nation’s ability to reap the rewards of shale gas development.

For more information, visit www.ihs.com.

More News:

  • SOCMA Hosts 93rd Annual Dinner And Awards Showcase

    The Society of Chemical Manufacturers and Affiliates (SOCMA) is returning to the New York Marriott Marquis Times Square on December 8, 2014, for its 93rd Annual Dinner honoring Performance Improvement Award winners and featuring a Leadership and Business Development Speaker Showcase.

  • Summit Features Bio-Based Tech Startups

    The 6th Next Generation Bio-Based & Sustainable Chemicals Summit, February 3 – February 5, 2015, in New Orleans, LA brings together bio-based tech startups, specialty chemical manufacturers, chemical majors, feedstock providers, financiers and strategic venture capitalists to explore bio-based chemicals.

  • Flint Hills Resources Will Cease Marysville Operations

    Flint Hills Resources plans to close its Marysville, Michigan polypropylene facility.

  • EFCE Seeks Award Nominees

    Award honors outstanding thesis in thermodynamics or transport properties

  • British Safety Regulator Gets New Head

    Executive has worked in both the public and private sectors

  • AkzoNobel Partnership Investigates Waste As Feedstock

    AkzoNobel is part of a major Dutch partnership working with Canada's Enerkem to explore the use of waste streams as a feedstock for chemical production and the development of waste-to-chemicals facilities.

  • Scientist And CorningWare Inventor Stookey Dies

    S. Donald Stookey, credited with inventing CorningWare, died on Tuesday, November 4 at the age of 99.

  • DOE Funds New Gasification Research

    The Department of Energy announced new investments in gasification research.

  • SOCMA Awards Honor EHS&S Improvement

    More than 28 member facilities will receive 2014 Performance Improvement Awards for their outstanding commitment to continuous improvement in environmental, health, safety and security (EHS&S) practices at the Society of Chemical Manufacturers and Affiliates (SOCMA) 93rd Annual Dinner on December 8 in New York.

  • PEER Launches Legal Defense Fund For U.S. Scientists

    The Public Employees for Environmental Responsibility (PEER) has launched a free legal defense fund for U.S. scientists in government and academia.

All news »

What are your comments?

Join the discussion today. Login Here.

Comments

No one has commented on this page yet.

RSS feed for comments on this page | RSS feed for all comments