By Dan,
posted on Tuesday, February 14, 2012.
The chemical manufacturing sector is realizing a resurgence of
production thanks to the abundance of clean, American natural gas.
To the general public, what that means is that in addition to
supporting our economy and energy security, stable natural gas
prices now and into the future mean that whole sectors of the
economy are thriving, right here in America. With the amount
of natural gas that we can safely and responsibly develop here in
America, countless jobs can be created and sustained for decades to
come.
National Public Radio (NPR) recently highlighted the expansion of the chemical
industry in West Virginia, thanks in large part to the
abundance of natural gas available in the Marcellus Shale.
The story reports on companies in Charleston that have built
plants in the area and are using natural gas from the Marcellus to
produce ethylene, a chemical necessary for a number of products
consumers use daily including seat cushions and clothing. Building
just one of these plants employs about 2,000 construction workers
and creates several hundred permanent jobs to operate the plant
following construction.
The benefits of natural gas for manufacturing go far beyond West
Virginia. In fact, a recent study by PricewaterhouseCoopers (PwC)
and the National Association of Manufacturers (NAM) found that
America's natural gas abundance is powering a major expansion of
manufacturing across America.
The study revealed that companies that formerly looked outside
the U.S. to expand are now bringing their business home thanks to
the lower energy costs offered by natural gas. Specifically, as a
result of lower energy costs, Dow Chemical plans to build a new
ethylene unit on the Gulf Coast by 2017. Additionally, Formosa
Plastics plans to spend $1.5 billion on an ethylene plant and
downstream assets in Texas due to increased shale supply.
Our newfound supplies of shale gas are also benefiting the
companies that make products designed to explore and produce the
shale gas. U.S. Steel plans to invest $95 million in an Ohio plant
to meet the demand for increased shale gas development. Others,
such as Tinken Co., Republic Steel and V&M Star are following
suit and creating jobs.
NPR's story of chemical manufacturing returning to West
Virginia is yet another example of how continued expansion of our
domestic shale gas resources is doing more than just lowering
energy prices; its reinvigorating U.S. manufacturing and America's
energy economy.