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Shale Gas, Competitiveness, and New US Chemical Industry Investment: An Analysis Based on Announced Projects

Shale Gas, Competitiveness, and New US Chemical Industry Investment: An Analysis Based on Announced Projects

Full Title: Shale Gas, Competitiveness, and New US Chemical Industry Investment: An Analysis Based on Announced Projects
Author(s): American Chemistry Council
Publisher(s): American Chemistry Council
Publication Date: May 1, 2013
Full Text: Download Resource
Description (excerpt):

This report is the third in a series examining the potential economic and employment benefits of natural gas development from shale. The first report, released in March 2011, presented the results of an analysis of the potential economic effects of increased petrochemicals production to the US economy. That report, Shale Gas and New Petrochemicals Investment: Benefits for the Economy, Jobs, and US Manufacturing, discussed the impact of a hypothetical 25 percent increase in ethane supply on growth in the U.S. petrochemicals. ACC found that the increase would generate new capital investment and production in the chemical industry, job growth in the chemical industry and in its supplier sectors, expanded output throughout the U.S. economy and increases in federal, state and local tax revenues.

In May 2012, ACC extended the analysis to consider the impact of lower natural gas prices on a wider segment of the US manufacturing base. The report analyzed the effects of renewed competitiveness and the supply response among eight key manufacturing industries: paper, chemicals, plastic and rubber products, glass, iron and steel, aluminum, foundries, and fabricated metal products industries. In that report – Shale Gas, Competitiveness and New Investment: Benefits for the Economy, Jobs, and US Manufacturing – ACC found a tremendous opportunity for shale gas to strengthen US manufacturing, boost economic ouput and create jobs.

This third report – Shale Gas, Competitiveness and New US Chemical Industry Investment: An Analysis Based on Announced Projects – returns once again to the chemical industry. The report is based on a detailed examination of the 97 chemical industry projects that have been announced as of March 2013 and their potential for job creation, increased output, and additional tax revenue at the state, local and federal levels. The analysis was broken into parts: 1) Economic impacts that occur during the ten-year initial capital investment phase, when new plant and equipment are purchased and plants constructed; and 2) Economics impacts as a result of ongoing increased chemical output, made possibly by lower natural gas prices and increased availability of ethane.

All statements and/or propositions in discussion prompts are meant exclusively to stimulate discussion and do not represent the views of OurEnergyPolicy.org, its Partners, Topic Directors or Experts, nor of any individual or organization. Comments by and opinions of Expert participants are their own.

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