BASF: shale gas offers 'huge opportunities'

Hamish Champ
PRW

Published: May 23, 2014 9:47 am ET
Updated: May 23, 2014 9:49 am ET

Image By: BASF SE Kurt Bock, CEO of BASF SE

Related to this story

Topics Materials, Public Policy, Materials Suppliers
Companies & Associations BASF SE

Chemicals giant BASF SE says the shale gas boom currently underway in the U.S. offers the business “an outstanding opportunity” in that market, but its impact on its European operations would be more limited.

Speaking at a meeting with analysts in London to discuss BASF's chemicals activities May 22, Wayne Smith, a member of the company's board, said the development of shale gas was “clearly an outstanding raw material event” and would increase the entrepreneurial environment in the U.S.

Increased production of shale gas would “decouple” crude oil and natural gas prices in America, Smith said, but the company has no plans to ship shale-related products to Europe due to the cost involved.

Earlier this month, BASF had indicated it was looking at a large investment to exploit low-cost shale gas in the U.S., probably on the Gulf of Mexico, following the conversion of an existing cracker at Port Arthur, Texas, to run on ethane.

While shale gas exploitation has the potential to take the U.S. economy by storm, some European governments have been slow to go down this route, following pressure from environmental groups.

In other comments at the meeting, Kurt Bock, BASF's chief executive, said while his company was committed to investing in Europe it not currently see it as a growth region.

Bock criticized politicians in Brussels for dithering over 'growth versus politics', arguing that members of the European Parliament had to make up their minds about priorities.

If they wanted BASF and others to meet tougher carbon targets the firm might have to shrink its activities in order to achieve them. “But then they also want economic growth,” he said. “So they have to decide.”

However Bock said he thought some at the heart of the European Union were “trying to do the right thing”.

The BASF chief said he believed the current crisis in Ukraine would not affect the firm's agri-business in the country and would eventually be “contained”, while partnerships with Russian firms, such as Gazprom, would be unaffected “thanks to dialogue,” he believed.

And while rivals of BASF faced shareholder concerns over strategy, Bock said investors in his business “understood the BASF story.

“We have active shareholders, rather than 'activist' shareholders. We're not perfect, but by being transparent about what we do we can create comfort and confidence for shareholders.”


Comments

BASF: shale gas offers 'huge opportunities'

Hamish Champ
PRW

Published: May 23, 2014 9:47 am ET
Updated: May 23, 2014 9:49 am ET

Post Your Comments


Back to story


More stories

Image

Study: 100 times less plastic than expected polluting ocean surface

July 23, 2014 3:46 pm ET

There's as much as 100 times less plastic floating on surface of the world's oceans than would be expected given the mushrooming use of the material...    More

Image

Molder provides quality parts and quality work for disabled adults

July 23, 2014 2:40 pm ET

Coarc Manufacturing Inc. does injection molding, assembly and all of the work of traditional manufacturer, but it also serves as part of Coarc Inc. a ...    More

Image

Asia to remain chemical giant but US shale will bring competition

July 23, 2014 1:00 pm ET

A new IHS Chemical report on global spending for chemical production predicts capacity additions will peak in 2014 at $120 billion and then will...    More

Image

DuPont quarterly sales drop, income rises

July 23, 2014 12:46 pm ET

DuPont Co.'s sales and net income experienced slight changes for the second quarter 2014, as operating earnings dropped to $1.17 per share in the...    More

OSHA probes alleged asthma link to Lear's Selma, Ala., plant

July 23, 2014 11:58 am ET

U.S. foam manufacturer Renosol Seating LLC is being investigated following allegations its workers are at risk of asthma from TDI exposure at its plan...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events