16 April 2013 18:42 [Source: ICIS news]
SAN FRANCISCO (ICIS)--The US will have a competitve advantage in extracting shale gas and producing petrochemicals for at least the next decade, the president of the American Chemistry Council (ACC) said on Tuesday.
Speaking at the International Institute for Synthetic Rubber Producers (IISRP) Annual General Meeting, former ?xml:namespace>
“Affordable, competitively priced natural gas is driving significant new capital investment in the
He noted that the chemical industry has announced about $55bn (€42bn) in new capital investments in more than 70
Dooley said that in 2008, the average cost of ethane in the
According to Dooley, this renaissance in chemical manufacturing will contribute about $67bn in added output to US GDP by 2020. He estimated there will be 310,000 new jobs directly related to the chemical industry, and another 327,000 indirect jobs. The ACC estimates that because of cheap feedstocks the
Dooley did cite several notes of caution, mainly related to the
“President Obama hasn’t done much to impede development,” he said, “But the industry has not been able to develop oil and natural gas resources on public lands.”
Dooley also said the ACC has some lingering concerns about the US Environmental Protection Agency’s (EPA) plans to the Clean Air Act to deal with emissions.
“Most importantly, emissions of methane,” Dooley said. “It could constrain production of natural gas. We are working to make sure that doesn’t happen.”
He said the ACC is also watching a new EPA study due out early in 2014 and how it could lead to new standards for hydraulic fracturing.
“I’m confident that the production side can demonstrate that we have the technology to extract natural gas and oil in an environmentally responsible way,” Dooley said.
But he said industry prefers that fracking standards be left up to the states, and not the federal government, because of differences in geology from region to region.
“Our industry and the
Dooley emphasized that regulation matter because “it’s not just happenstance that almost all the research and development of genetically-modified foods is now done in the
More specifically, Dooley said that the industry needs to work to make sure that the
“We see a trend line in the EU of increasing costs for energy and feedstocks,” Dooley said. “The
He noted that since 2009, German chemicals giant BASF has invested $5.7bn in the
($1 = €0.77)
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