The development of significant tight oil and shale gas deposits in the United States has resulted in a large increase of investment into new chemical production facilities; more than 100 million metric tons of capacity will be added to the US chemical industry by 2025. The majority of this new olefins (ethylene and propylene) chemical capacity will be converted to plastics. Methanol, caustic soda, and other liquid chemicals will represent almost 50% of the total increase by weight. This capacity expansion means there will be significant uptick in chemical trade activity and logistics consideration beyond producers and traders. As these chemical products expand, we expect to see increased marine, rail, and truck traffic, primarily in the US Gulf Coast. Manufacturing and support industries will also see greater opportunities for growth in transportation (i.e., domestic and export marine shipping, railroad, trucking), logistics services (i.e., loading, bagging, trans loading, storage, terminaling), and other manufacturing services.
IHS Markit strategic report – US Bulk Chemical Industry: Trade and Logistics in the Shale Gas Era uncovers the the key drivers for US development along the bulk chemical value chain. Get insight on what potentially significant opportunities are available, relative to the shale gas boom for all participants – from producers to end users, investors, and transportation and logistics companies. Stay up to date on possible downstream chemical products that are an attractive opportunity based on a strong competitive US base chemical cost position. Identify the economic forces that affect global and intra-regional trade patterns in North America. And develop a refined view of the preferred US domestic shipping modalities and likely international import/export ports.
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