The American Chemistry Council (ACC) says that potential U.S. chemical industry investment linked to plentiful and affordable natural gas and natural gas liquids from shale formations has topped $100 billion.
As of this month (February), 148 projects valued at $100.2 billion have been announced. These projects – new factories, expansions and process changes to increase capacity – could lead to $81 billion per year in new chemical industry output and 637,000 permanent new jobs by 2023. More than half of the investment is by firms based outside the U.S., informs ACC.
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“This is a historic milestone for America’s 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 production boom, the United States is the most attractive place in the world to invest in chemical and plastics manufacturing. It’s an astonishing gain in competitiveness.”
Chemical makers are transforming domestic energy into a stronger economy and new jobs. Between 2010 and 2023, $100.2 billion 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, ACC’s analysis showed.
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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 Obama‘s pledge to help make sure these projects happen,” Dooley continued.
“We’re glad the White House agrees that regulatory permitting issues must not be a roadblock to new U.S. investment, and we are excited to get these projects approved and built.”
The President highlighted shale gas and the need for prompt approval of manufacturing projects during his State of the Union Address.
The American Chemistry Council (ACC) represents the leading companies engaged in the business of chemistry.
Photo courtesy: American Chemistry Council