Shale sparks US chemicals boom
26 Feb 2014
Potential chemicals industry investment in new projects linked to shale gas extraction has passed $100 billion (£59.9bn), according to a new report.
The American Chemistry Council (ACC) announced last week that investment in 148 new factories, project expansions and facility upgrades has been valued at $100.2bn.
The investment is linked to the abundant supply of natural gas and natural liquid gas attributed to the America’s current shale gas boom, which has driven the price of such commodities to roughly one quarter of those in Europe.
This is a historic milestone for America’s chemical industry
ACC president Cal Dooley
The ACC has also estimated that these projects could lead to $81bn (£48.5bn) per year in new chemicals industry output, as well as the creation over 600,000 new jobs by 2023.
“This is a historic milestone for America’s chemical industry and proof that shale gas is a powerful driver of manufacturing growth,” said ACC president Cal Dooley.
“Thanks to the shale gas production boom, the United States is the most attractive place in the world to invest in chemical and plastics manufacturing. It’s an astonishing gain in competitiveness.”
However, companies investing in large manufacturing projects within the US often face a complex permitting process that must meet federal, state and local requirements.
To combat these issues, US President Barack Obama highlighted the need for prompt approval of shale-driven manufacturing projects during his State of the Union address last week.
“We’re glad the White House agrees that regulatory permitting issues must not be a roadblock to new US investment, and we are excited to get these projects approved and built,” Dooley added.
The announcement comes a month after UK Prime Minister David Cameron addressed delegates in Switzerland about the vital role shale gas development will play in encouraging manufacturers to return to the UK and Europe.
Cameron told the world leaders at the World Economic Forum in Davos that the US was experiencing a huge surge in reshoring thanks to low energy prices driven by its shale oil and gas boom, and that the UK and Europe should follow this example.
