US chemical industry invest $100 bn due to shale gas boom

Shale gas boom in the US has led to investment of about $100 billion in the chemical industry. According to the American Chemistry Council (ACC), potential US chemical industry investment linked to plentiful and affordable natural gas and natural gas liquids from shale formations has topped $100 billion. As of this month, 148 projects valued at $100.2 billion have been announced. These projects - new factories, expansions and process changes to increase capacity - could lead to $81 billion per year in new chemical industry output and 637,000 permanent new jobs by 2023. More than half of the investment is by firms based outside the US.
 
“This is a historic milestone for America’s chemical industry and proof that shale gas is a powerful driver of manufacturing growth. Thanks to the shale gas production boom, the US is the most attractive place in the world to invest in chemical and plastics manufacturing. It’s an astonishing gain in competitiveness,” said ACC President and CEO Cal Dooley.
 
Chemical makers are transforming domestic energy into a stronger economy and new jobs. Between 2010 and 2023, $100.2 billion in increased capital spending can create an estimated 55,000 permanent new chemical industry jobs, 314,000 jobs in supplier industries and 267,000 payroll-induced jobs in communities where workers spend their wages, ACC’s analysis showed. An additional 222,000 temporary jobs will be created during the capital investment phase, which peaks in 2016.
 
Dooley added, “Given the enormous benefits of shale-related manufacturing, we are encouraged by President Obama’s pledge to help make sure these projects happen. We are 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.”
 
Companies investing in large-scale manufacturing projects such as new factories and expansions face a complex permitting process that includes federal, state and local requirements. To go forward, these companies need certainty as to the processes and timing for obtaining permits. Other policies key to realising the shale gas opportunity include access to domestic natural gas resources; responsible, state-based regulation of production; and rapid development of infrastructure to transport supplies.