Shale’s Bounty Goes Beyond Oil and Gas

Chemicals , Natural Gas , Plastics Dec 20, 2011 No Comments

 

Liquid natural gasProcessing ethane into chemicals is 50% cheaper than using crude oil-derived naptha and its availability has made U.S. petrochemical companies the envy of overseas competitors. It also brings the prospect of lower prices for auto parts, Styrofoam and other products.

The U.S. shale-oil and natural-gas boom has cracked open another lucrative market—gas liquids used to make plastics.

The same drilling technologies that have unlocked vast amounts of crude and natural gas from previously unproductive shale formations across the U.S. also are reaping large stores of ethane, propane and butane, known as natural-gas liquids.

This growing bounty has resuscitated the U.S. petrochemical industry, which just a few years ago was being strangled by the high costs of the raw materials.

via Shale’s Bounty Goes Beyond Oil and Gas – WSJ.com.

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Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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