Podcast: What Topped Chemical Industry News in January 2026?

Welcome to Distilled News for January 2026. I'm Jonathan Katz with the top stories trending on ChemicalProcessing.com since the New Year.

Chemical Industry Outlook

We start with the 2026 outlook from Martha Gilchrist Moore, chief economist at the American Chemistry Council.

As Moore reports, the U.S. chemical sector enters 2026 with cautious optimism despite near-term challenges. The economy has remained resilient despite significant uncertainty, with GDP growth of 1.9% in 2025 and projections of 2% for 2026.

Chemical production grew just 0.7% in 2025, with specialty chemicals performing better than consumer products. For 2026, volumes are expected to remain nearly flat, rising only 0.4%. The industry faces uneven demand across sectors, with AI-driven infrastructure and semiconductors thriving, while construction-related markets continue to lag.

Trade remains challenging, with chemical exports declining 2% in 2025 and another projected drop of 0.6% in 2026. Still, the U.S. maintains its trade surplus in chemicals. Capital spending rose to $39.8 billion in 2025, though high borrowing costs and tariff uncertainties are expected to slow growth to 1.8% this year.

Despite near-term headwinds, the long-term outlook remains positive. The industry's energy and feedstock advantages, combined with major investments in advanced manufacturing, position it for sustained growth over the next decade.

Formaldehyde Regulation Battle

Turning to regulation, formaldehyde has become a flashpoint between EPA and the chemical industry under the Trump administration.

In December, EPA proposed nearly doubling allowable formaldehyde exposure levels to 0.3 ppm in a revised draft risk assessment. This followed a January 2025 finalized evaluation under the Biden administration that found formaldehyde presents unreasonable health risks to workers and consumers.

The American Chemistry Council welcomed the December revision, saying it finally addressed peer-review concerns from 2011. However, Christopher Frey, former EPA assistant administrator under Biden, criticized the approach. He argues EPA is setting limits based on preventing short-term irritation while ignoring its own findings that formaldehyde causes cancer through genetic mutations, for which no safe exposure level exists.

The debate centers on scientific methodology. ACC contends the earlier assessment relied on flawed analyses and overly conservative assumptions. EPA under Trump says it's correcting the record to reflect best available science.

In congressional testimony, ACC called for risk-based approaches over what it characterizes as hazard-only assessments, warning that overly restrictive regulations discourage domestic innovation and threaten U.S. competitiveness.

However, Frey stated in an email to Chemical Processing that “EPA is now demonstrating that it will shop around for an answer that favors preferred stakeholders rather than follow established scientific processes and procedures to arrive at a scientifically robust finding.”

He concluded that “this is an infringement of scientific integrity.”

Trump Pushes Venezuela Oil Investment

President Trump convened major U.S. oil executives at the White House to push for at least $100 billion in Venezuelan oil investment following the capture of Nicolás Maduro, according to a Bloomberg News report distributed by Tribune News Service.

The response was cautious. Exxon CEO Darren Woods called Venezuela "uninvestable" under current conditions, noting his company's assets had been seized by the government there twice before. He said legal frameworks, financial protections and return guarantees must be established before decisions can be made.

Chevron, the only U.S. major still operating in Venezuela, said it could increase its current 240,000 barrels per day production by roughly 50% over 18 to 24 months. Other executives expressed interest but stressed the need for clear commercial arrangements and security guarantees.

Trump promised total safety and security, saying companies would deal directly with the U.S. government rather than Venezuela. He stated companies would spend their own money, not government funds.

The challenge is significant. Venezuela's oil infrastructure has deteriorated after decades of disrepair. Rebuilding abandoned rigs, leaky pipelines and fire-damaged equipment could take years and tens of billions of dollars before production meaningfully increases from its current level below 1 million barrels per day, according to the Bloomberg report.

Winter Storm Threatens Chemical Operations

A major winter storm brought heavy snow, ice and Arctic cold to over 35 states beginning in late January, threatening operations across major chemical manufacturing regions.

The system affected areas from the Southwest through the Southern Plains, Southeast, Mid-Atlantic and Northeast. The combination of extreme cold, ice accumulation and snow raised concerns about power outages, plant utilities, electrical reliability and disruptions to feedstock and product logistics.

The U.S. Chemical Safety and Hazard Investigation Board has warned that chemical incidents increase during cold weather months and urged facilities to implement formal winterization programs. Recommended steps include identifying freezing hazards like ice formation and dead legs in inactive piping, reviewing out-of-service equipment, and updating operating procedures following industry guidance from organizations like the American Petroleum Institute.

And Finally...

On a lighter note, a Chicago-area chemical plant operator went viral during the Bears-Packers playoff game. Brandon Martinez was caught on national television shredding a block of cheese with a handheld grater following a Bears touchdown—a playful jab at Packers fans' Cheesehead identity. The moment quickly spread across social media, turning a spontaneous reaction into an internet sensation.

That wraps up this month's top stories from ChemicalProcessing.com. Stay informed on the stories that matter most to the chemical processing industry in 2026. I'm Jonathan Katz, and this has been Distilled News.