The American Chemistry Council (ACC) reported that potential
investment in the US chemical will reach over $100 Billion
(B). This wave of activity is supported by abundant and
affordable natural gas
and natural gas
liquids from shale formations.
At present, 148 projects valued at $100.2 B have been
announced. These project
s include new grassroots facilities
s and process changes;
all are aimed to increase production capacity and output. The
new investment activity could lead to $81 B/year in new
chemical industry output and 637,000 permanent new jobs by
2023. Over half of the investment is by firms based outside
This is a historic milestone for Americas
chemical industry and proof that shale gas is a powerful
driver of manufacturing growth, said ACC President and
CEO Cal Dooley. Thanks to the shale gas
boom, the US is the most attractive place in
the world to invest in chemical and plastics manufacturing.
Its an astonishing gain in competitiveness.
Between 2010 and 2023, $100.2 B in increased capital spending
can create an estimated 55,000 permanent new chemical
industry jobs, 314,000 jobs in supplier industries and
267,000 payroll-induced jobs in communities where workers
spend their wages, ACCs analysis showed. An additional
222,000 temporary jobs will be created during the capital
investment phase, which peaks in 2016.
Given the enormous benefits of shale-related
manufacturing, we are encouraged by President Obamas
pledge to help make sure these project
s happen, Dooley
continued. Were glad the White House agrees that
regulatory permitting issues must not be a roadblock to new
US investment, and we are excited to get these projects
approved and built. President Obama highlighted shale
gas and the need for prompt approval of manufacturing
projects during his recent state of the union address.
Companies investing in large-scale manufacturing project
s such as new grassroots
plants and expansion
s face a complex
permitting process that includes federal, state and local
requirements. To go forward, these companies need certainty
as to the processes and timing for obtaining permits. Other
policies key to realizing the shale gas opportunity include
access to domestic natural gas
responsible, state-based regulation of production; and rapid
development of infrastructure to transport supplies.