New Report: Shale Will Boost U.S. Chemical Exports
A new report prepared for the American Chemistry Council (ACC) showcases the positive impact of the U.S. shale revolution on manufacturing and our economy. According to the report’s key findings:
- Gross exports of shale gas derived chemical products will double from $60 billion in 2014 to $123 billion by 2030
- Trade surplus for selected chemicals is projected to increase from $19.5 billion in 2014 to $48.3 billion in 2030
- U.S. chemical companies have begun or are planning 223 shale-related projects to date, representing a cumulative investment of $137 billion
- Shale revolution will provide a long-term competitive advantage for U.S. chemical manufacturers
Indeed, shale development has revitalized U.S. manufacturing – a primary indicator of the strength of a nation’s economy. A report by PricewaterhouseCoopers (PWC) studied the impact of shale development on domestic manufacturing and found:
- Shale gas development could generate annual cost savings of $22.3 billion in 2030 and $34.1 billion in 2040 for U.S. manufacturers
- Shale gas based manufacturing would create 930,000 jobs by 2030 and 1.41 million by 2040
A report by the University of Michigan came to a similar conclusion:
“More than 200 mostly U.S.-based companies have participated in onshoring during the past four years, a trend in part motivated by the availability of less expensive natural gas. One Fall 2013 survey of $1B-plus company executives stated that over half of those are either already planning for or actively considering moving production back to the U.S. from China – a figure double that from the same survey given the previous year.”
Besides the impact on the manufacturing industry, the University of Michigan report highlights a number of other benefits brought on by shale gas development – including, but not limited to, lower energy costs for businesses; a low-cost source of transportation fuel; lower fertilizer costs for farmers; cutting the trade deficit; and increasing our energy security.
The economic impact of shale development has been revolutionary, according to a report by the National Association of Manufacturers:
- Shale development is projected to support nearly 3.9 million jobs by 2025
- Increase disposable income to more than $2,000 per U.S. household by 2015
- And, contribute upwards of $533 billion to our GDP by 2025.
Catalyzed by this surge in energy production, the United States is now the world’s largest producer of oil and natural gas, triggering reverberations in the global energy markets. It has also proven to be a game-changer for the United States’ economy. With our nation’s estimated 100 year supply of natural gas, the U.S. chemical industry can count on an abundant, affordable and secure source of energy for years to come.