Investments in US shale gas could create 500,000 jobs

By Frank Esposito
Senior Staff Reporter

Published: May 21, 2013 12:45 pm ET
Updated: May 21, 2013 12:47 pm ET

Related to this story

Topics Materials Materials Suppliers
Companies & Associations American Chemistry Council

WASHINGTON — A new report from the American Chemistry Council anticipates that almost 100 announced plastics and chemicals expansions could create more than 500,000 permanent jobs.

The report — released May 20 by Washington-based ACC — details 97 plastics and chemical projects that have been announced in the five years since natural gas supplies began to increase throughout North America. Those projects represent $71.7 billion in potential new U.S. investment and by 2020 could create 46,000 chemical industry jobs, 264,000 supplier industry jobs and 226,000 jobs in communities where workers spend their wages — for a total of 536,000 new jobs. Those jobs are expected to create $20 billion in federal state and local tax revenue by 2020.

Another 1.2 million temporary jobs would be created during a capital investment phase between 2010 and 2020, according to the report.

“The U.S. has become a magnet for chemical industry investment, a testament to the favorable environment created by America’s shale gas, as well as a vote of confidence in a bright natural gas outlook for decades to come,” ACC president and chief executive officer Cal Dooley said in the release.

ACC officials also stressed the importance of government policies, which, they said, “will strongly influence whether the U.S. is able to realize the shale gas opportunity.” According to ACC, needed government policies include:

- access to natural gas reserves on government and private lands,

- reliable infrastructure to transport supplies,

- timely permitting of new construction or expansion projects,

- implementation of responsible, state-based regulations for natural gas production.

New natural gas finds in areas such as the Barnett, Marcellus and Utica shale regions are expected to provide industry with low-cost feedstocks for many years to come. These supplies have prompted North American polyethylene resin maker to announce plans to add almost 18 billion pounds of new capacity over the next few years. Based on 2012 capacities, that level of expansion would equate to a 40 percent capacity increase.

Market watchers have said that this new capacity should lead to new PE processing capacity being added in North America, especially in the film and bag sector. New shale gas also could lead to capacity additions for PVC and polypropylene resin, although no announcements have been made regarding those materials.


Comments

Investments in US shale gas could create 500,000 jobs

By Frank Esposito
Senior Staff Reporter

Published: May 21, 2013 12:45 pm ET
Updated: May 21, 2013 12:47 pm ET

Post Your Comments


Back to story


More stories

Image

Dow Chemical to merge chlorine operations with Olin

March 27, 2015 12:43 pm ET

Dow Chemical Co. is combining a large part of its chlorine value chain with specialty chemicals and ammunition maker Olin Corp. to create a global...    More

Image

Eastman Chemical expanding Tritan co-polyester capacity

March 27, 2015 10:00 am ET

Eastman Chemical Co.'s Tritan-brand co-polyester business continues to grow, with 35 million pounds of capacity added late last year and a second...    More

Image

PolyOne's Patterson focused on keeping the momentum going

March 27, 2015 9:30 am ET

New PolyOne CEO Robert Patterson sees a lot of good things when he looks at his company, which ranks as North America's largest compounder and...    More

Image

Improvements to Radici's nylon line takes it into more applications

March 27, 2015 9:00 am ET

Radici Group, the Italian-headquartered materials firm, outlined the benefits of its Radilon and Radistrong nylon products at NPE 2015.    More

Sun Plastech, Plastics Color Corp. note major milestones at NPE

March 27, 2015 9:00 am ET

Sun Plastech Inc. and Plastics Color Corp. — two well-known materials firms — are marking anniversaries at NPE 2015.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events