U.S. seen becoming net chemical exporter, thanks to shale boom


The U.S. is poised to become a net exporter of chemicals thanks to the shale oil boom, FT reports; the American Chemistry Council forecasts net U.S. chemical exports of ~$2.7B this year and expects exports to rise 45% over the next five years to nearly $30B by 2018.

U.S. companies such as Exxon Mobil (XOM), Dow Chemical (DOW), Chevron (CVX) and Phillips 66 (PSX) are among the leaders in investing in new capacity, but even producers from Asia and the Middle East are looking at projects in the U.S.

Dow's Andrew Liveris speaks for big companies that want curbs on U.S. exports of liquefied natural gas to ensure their energy cost advantage; with five LNG projects now approved for export sales by the Obama administration, "where they are right now seems to be fine," he says.

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Comments (9)
  • ComputerBlue
    , contributor
    Comments (1148) | Send Message
     
    What a joke. "where they are right now seems to be fine". How about we tell them they can't export their products either.
    9 Dec 2013, 06:35 PM Reply Like
  • Phenom1
    , contributor
    Comments (445) | Send Message
     
    How about companies be given the freedom to make a profit without government telling them anything?!
    9 Dec 2013, 06:42 PM Reply Like
  • ComputerBlue
    , contributor
    Comments (1148) | Send Message
     
    Amen.
    9 Dec 2013, 06:47 PM Reply Like
  • hobart16
    , contributor
    Comments (644) | Send Message
     
    Dow apparently wants to make sure it has ample cheap feedstock to itself, or it has invested in export license and wants to shut the door behind them.
    9 Dec 2013, 07:50 PM Reply Like
  • Hendershott
    , contributor
    Comments (1685) | Send Message
     
    If Dow wants to lock up cheap NG there are plenty of producers they could buy or get long term supply agreements with, much the way Chineire has long term supply agreements. On the other hand, maybe we could restrict chemical exports so we could have a big supply of cheap chemicals to feed our manufacturers. That's basically what Dow is asking for with NG.
    9 Dec 2013, 07:53 PM Reply Like
  • meboy999
    , contributor
    Comment (1) | Send Message
     
    Nice
    9 Dec 2013, 11:02 PM Reply Like
  • jpmj4847
    , contributor
    Comments (554) | Send Message
     
    Come on now, one just needs to learn for the past and in this case not that long ago. Yes Hendershott, I agree. Who issued the first permit to LNG, and what Energy Panel also backed DOW moves that you are eluding to just before the natural gas boom. All big money knows who's backs to skim. This shot in the arm is what American needs, please listen to Phenom 1's comment, MR. GOVERNMENT. jpmj4847
    9 Dec 2013, 11:20 PM Reply Like
  • moseharper
    , contributor
    Comments (466) | Send Message
     
    OGEC- Organization of gas exporting Countries (us as the only member). Tables are turned? What goes around comes around?
    10 Dec 2013, 07:07 AM Reply Like
  • User 18573772
    , contributor
    Comment (1) | Send Message
     
    Seems Dow is wanting to keep their feedstocks priced low so they can ensure they make more money. BTW-where will this ethylene and resulting plastic be going?? Staying here or will Dow be the exporter of American Natural Gas in it's process state, AFTER they extract profits. It's an open market, Dow can pay the going rate....
    10 Dec 2013, 11:12 AM Reply Like
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