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US chemical group retracts stated support for natural gas exports

01.25.2013  |  HP News

The American Chemistry Council (ACC) has retracted a week-old statement on its website in support of US natural gas exports, officials with the trade group confirmed.

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The American Chemistry Council (ACC) has retracted a week-old statement on its website in support of US natural gas exports, officials with the trade group confirmed on Friday.

Dow Chemical severed ties with the National Association of Manufacturers (NAM) after that group endorsed exports and had hinted that it could do the same with the ACC.

“The statement accurately reflects executive committee policy dating to February 2012,” Scott Openshaw, a spokesman for the American Chemistry Council, said in a statement.

“However, the issue and its implications for some of our members have evolved. We therefore plan to further discuss this issue to assure all members’ views are fully represented and the implications understood.”

Dow said it was pleased the ACC removed its endorsement, according to published media reports.

The move underscores rising tension between the US gas industry, which seeks access to global demand and potentially higher prices, and the petrochemical sector, which has benefitted in recent years from relatively cheap and available natural gas feedstock.

Dow Chemical, of course, is seeking limits on gas exports. Dow CEO Andrew Liveris has said unchecked exports will increase domestic prices and threaten investments in the US manufacturing sector.

Dow has accused trade groups such as NAM of siding with member companies that are in the natural-gas industry, rather than adopt “a position of neutrality on an issue that splits its membership”.

NAM has maintained that sales of natural gas to foreign buyers would create opportunities for US businesses, a position on which the ACC did not disagree, at least initially.

“We respect the marketplace and rely on it to determine who the consumers of natural gas will be,” ACC chief executive Cal Dooley said a week ago, prior to the retraction.

ExxonMobil, another NAM member company, is proposing to build a natural-gas export terminal in Texas. It has accused Dow and other companies opposed to limitless exports of being “protectionist”.

A study conducted last month by the US government concluded that exports would benefit the nation’s economy. There are about 15 proposed export projects awaiting approval from the Obama administration.


Additional reporting by Dow Jones Newswires



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Ravi
03.13.2013

Like the Chinese say about the French Revolution, we will know a few centuries if it was a good idea. So Nixon oenping up China? We will know in a few more decades if it was a good idea.I sense the tide is turning, and US exports to China will only grow from here on, as 1.5 billion Chinese eat and consumer more, but living standards rise there. Our living standards may not rise, and we are already a nation of fatsos.In 20 years, the Chinese will pass by Japan, and the USA and India will offer the last low-cost manufacturing platforms to the world, except India will be too corrupt. Manufacturing is hopeless in Africa, of course, and South America is the Gong Show.But there is a chance we will have bankrupted ourselves with wars, military and social spending, and our infrastructure will be so feeble that will not be able to take advantage of this possibility. But maybe China will build out our infrastructure the way they do for Africa sometimes. Southeast Asia will become another platform. Learn to speak Thai or Mandarin.

sridhar.r
02.13.2013

What is the cost of Shale gas per kg or gallon? How it would be competitive to crude oil which in the liquid form??? When US is holding somuch of Crude oil under the earth(natural resource) why it should go for digging out shale gas, it is bit confusion!!!.

William Blackwood
01.31.2013

Help me figure this out, people. We sell our natural resources in the form of LNG to China and Japan. The petroleum companies selling get more money. They invest this money in more drilling; the local, state and federal governments get tax money on the profits and a number of jobs in the oil industry are created to build pipelines and other infrastructure, and take care of the oil transportation.

Once the oil infrastructure is built, the construction jobs will go--short term work.

The LNG is being sent to Japan and China so they can make value-added products. Their manufacturing industry is employing people to make these products--long term work. These products get shipped back to the US and sold. How does that affect the US trade deficit? It surely cannot help it.

Why not keep the LNG in the US, rebuild the factories (more short term employment), use cheap natural resources locally to make the products Japan and China would make and sell back to us. (Long term employment, ongoing local state and federal tax revenues from employed Americans, fewer GHG from transporting LNG halfway around the world and transporting product back, cut down on unemployment and cut down on the trade deficit., for starters.) The petroleum companies could charge whatever they wanted to the export countries to make up their profits. Higher raw materials costs for other countries would make US products more competitive.

J.M. Waniel
01.29.2013

It's time for us to take advantage of all our resources(natural gas, oil, and coal) as well a nuclear, coupled with responsible use of energy to move us to true energy independence. We need to do all we can to distance ourselves from those who do not share our interests.

Kamal Shah
01.28.2013

I feel the ACC is misinformed in thier judgement of retracting their earlier statement. I think both the energy industry as well as Chemical industry can benefit from the gas export.

BABAHAMMU BALIGH
01.25.2013

Welcome to my comment in there existing markets and open no narrowing yourselves in one angular little research in countries which import gas infected and many requests for promotion Almentjatkm planning and follow-up and thus creating a new market and deals as you folks to piece.Thank you very much for post

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