Shale gas Reshaping the US chemicals industry
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Shale gas
Reshaping the US chemicals industry
October 2012
A current look at the chemicals
industry value chain
At a glance
The impact of shale gas on
domestic chemical companies
has been to decrease the
costs of both raw materials
and energy.
It is estimated that the
US chemicals industry
investment in ethylene
production, has increased
capacity by 33%. As these
investments take hold,
yielding more supply, the
United States could become
a major, global, low-cost
provider of energy.
Volumes from natural gas
separation plants expected to
increase more than 40% over
the next five years.In a recent PwC report on the For manufacturing companies,
Executive summary potential impact of shale gas on US the initial opportunity has been in
manufacturing, it was stated that supplying products and services
by 2025, shale gas could add more to support shale gas expansion.
than 1 million workers to the US Subsequently, they may be able to
manufacturing industry and allow take advantage of low-cost chemicals
US manufacturers to lower their to create plastic-based substitutes
raw materials and energy costs by as for other materials, such as metal,
much as $11.6 billion annually.1 This glass, wood, leather, and textiles. For
potential is based on the United States’ manufactured products with a high
abundant supply of shale and the chemical content, such as automotive
country’s technological innovations bumpers, plastic sheets and panels,
in mining, which could enable the electronic components, and packaging
production of an inexpensive source films, lower natural gas prices could
of energy for the foreseeable future. provide a strong economic incentive for
While shale gas reserves are being US manufacturers to reverse offshoring
explored in many parts of the world, of manufacturing activity and build
only the United States has been able production facilities in the United
to commercialize production on a States. Longer term, lower energy costs
large scale. could help revive manufacturing in
the United States and positively affect
For chemical companies, the impact
the competitive position of American
of shale gas has been to decrease
manufacturing.
the costs of both raw materials and
energy. The price of US natural gas has
declined from $12.50/MBTU in 2008
to approximately $3.00/MBTU in 2012,
and prices are expected to decline
further, at least in the short term, as a
result of excess inventory.2 Based on
industry reports, we estimate that the
US chemicals industry has invested
$15 billion in ethylene production,
increasing capacity by 33%. As these
investments take hold, yielding more
supply, the United States could become
a major, global, low-cost provider
of energy and feedstocks to the
chemicals industry.
1 PwC, “Shale Gas: A renaissance in United States
manufacturing?” 2011
2 “US Shale Oil-Gas Production Potential 2: Shale
could greatly cut oil imports, if US gas markets are
developed,” Oil & Gas Journal, Sept. 3, 2012, 96
1 Shale gas: Reshaping the US chemicals industryAdvances in horizontal drilling and The actual amount of recoverable
Introduction fractionation of shale gas basins shale gas is up for debate, as are the
in North America are altering the safest and most ecological ways to
chemicals industry value chain, access the reserves. Nevertheless, it
constituting a potential game-changer has become clear that the United States
that could affect the entire energy has abundant, easy-to-access shale gas
industry. Recent technological reserves, which has resulted in huge
developments in North American shale investments by upstream industry
gas drilling have the potential to yield participants in shale gas drilling,
862 trillion cubic feet of technically ethane manufacturing assets, natural
recoverable shale gas in the United gas pipelines, processing equipment,
States, as PwC reported in “Shale Gas: and storage and transportation
A Renaissance in US Manufacturing,” facilities for natural gas liquids.3
published in December 2011.
The shale gas boom could change
the competitive landscape for value
chain participants. In this analysis, we
examine the immediate and longer-
term effects on the chemicals industry.
3 BENTEK Energy and Turner, Mason & Company,
“The Great NGL Surge!” Nov. 11, 2011
2A low-cost and abundant The chemicals industry
Impact of shale gas fuel and feedstock source value chain
on the chemicals Prices of natural gas in the United The NGL from shale gas production
industry value chain States have dropped sharply as a result is used by the chemicals industry to
of its availability in shale formations produce a variety of derivatives and
and the technological advancements products that ultimately become raw
in horizontal drilling and fractionation materials for multiple manufacturing
techniques to access it.4 These sectors, as depicted in Figure 1, which
advancements have boosted efficiency features the ethane chain.
in obtaining natural gas from shale,
As the chemicals industry ramps up its
including formations rich with natural
ethylene capacity and corresponding
gas liquids (NGLs).
downstream ethylene derivative
Before natural gas can be transported products, the impacts could flow
efficiently and sold commercially, its through the value chain into other
impurities must be extracted. The manufacturing sectors and, ultimately,
by-products of this extraction process, to finished products. Our analysis will
known as NGLs, include hydrocarbons use the ethane chain to highlight these
such as ethane, butane, and propane, potential changes.
which are valued as raw materials in
the petrochemical markets. With the
increase in natural gas production
comes an increase in NGL production,
with volumes from natural gas
separation plants expected to increase
more than 40% over the next five
years, reaching more than 3.1 MMBD
in 2016.5
4 “Petrochemicals,” Chemical Week, March 27, 2011
5 BENTEK Energy and Turner, Mason & Company,
“The Great NGL Surge!” Nov. 11, 2011
3 Shale gas: Reshaping the US chemicals industryFigure 1: Shale gas through the ethane chain into manufactured products
Ammonia Polyvinychloride Product categories Manufacturing sectors
Methane
Adhesives Apparel and accessories
Trichloroethylene
Methanol
Alkyd resins Beverages and tobacco
products
Solvents
Ethylene Vinychloride Chemicals
Corrosion inhibitors
Computers and electronics
Fatty Acid Amide
Textiles
Fabricated metal products
Inks, adhesives
Food and kindred products
Ethane Ethylene Shampoos, detergents, soaps
Ethoxylate
Leather and allied products
Natural gas (from welhead)
Paints
Machinery, except electrical
Polyethylene Glycol Coatings
Nonmetalic mineral products
Pipes, hoses, wire coating
Paper
Ethyl Acetate Coolant, antifreeze
Petroleum and coal products
Films, packaging, bottles
Fatty Acid Ethanol Pharmaceutical
Propane Propylene Paint remover
Plastics and rubber products
Plastics
Polyvinyl Alcohol Primary metal manufacturing
Tire and rubber
Printed matter and related
Lubricant additives
Polyvinyl Acetate Textiles and fabrics
Solvent, industrial cleaners
Textiles and mill products
N-Butylene
Ethylene Vinylacetate
Transportation equipment
Butane
Wood products
Isobutylene Acetic Acid
Sources: PwC and TopLine Analytics
4Figure 2: Economic cost model of natural gas to ethane-ethylene
US
Saudi Recent Historical Asia
Change in US natural
Raw material costs
gas cost
Natural gas costs $/MMBTU 0.75 3 12.5
Crude oil costs $/BBL 100
Equivalent $/ton 483 148 615 964
Ratio for 1 ton of ethylene 1 1.29 1.29 2.98
Ethane feedstock costs $/ton 483 190 793 2874
Catalyst + other $/ton 0 2 2 2
$/ton 483 192 795 2876
Other costs
By-product credits $/ton 276 153 431 1565
Utilities $/ton 149 109 454 235
Direct costs $/ton 99 167 167 172
US is lowest-cost
ethylene producer
Total ethylene cost $/ton 455 316 985 1717
Typical ethylene margin 2.50%
Transfer price for ethylene $/ton 466 323 1009 1760
Sources: CMAI, TopLine Analytics, and Alembic analysis, 2012
Note: The timing for Saudi Arabia and Asia is based on 2011 pricing for feedstock material. Their pricing has
remained constant over the period of this analysis.
Ethane to ethylene: a major Cost economics of ethane
first step in the chemicals and ethylene
industry value chain The availability of natural gas as a
The extracted raw materials are used low-cost energy source has resulted
to produce a variety of products in in lower-cost ethane and ethylene.6
the chemicals industry. In the case of While we can assume that natural
ethane, it is converted to ethylene and gas pricing will fluctuate over the
then a range of downstream products. next several years because of various
Ethylene is the most significant single market conditions, figures 2, 3, and
chemical in terms of volume and 4 use the price of $3.00 MMBTU for
value. natural gas, based on the NYMEX
2012 price of $2.58 and Trading
Charts futures forecasts of $5.90 for
April 2015 prices.7 8 This natural gas
price will affect the price of ethylene,
which is expected to decline from a
little less than $1,000 per ton to a little
more than $300 per ton, as indicated
in Figure 2.
6 “Petrochemicals,” Chemical Week, March 27, 2011
7 “Natural Gas Summary,” US Energy Information
Administration, July 31, 2012, Web
8 “Natural Gas Futures Prices,” Tradingcharts.com,
Aug. 1, 2012, Web
5 Shale gas: Reshaping the US chemicals industryFigure 3: Ethane to ethylene cost economics
US
US natural gas costs
Saudi Recent Historical Asia
reduced by 4.2x
Natural gas costs $/MMBTU 0.75 3 12.5
Crude oil costs $/BBL 100
Ethylene cost $/ton 466 323 1009 1760
Ratio for 1 ton of HDPE $/ton 1.025 1.025 1.025 1.025
Ethylene cost $/ton 478 332 1035 1804
Utilities $/ton 31 12 48 31
Direct cost $/ton 51 51 51 51
Other costs $/ton 132 132 132 132
Total costs $/ton 692 526 1266 2018
Polyethylene price
Typical polyethylene margin $/ton 3.00%
reduced by 2.4x
Potential HDPE selling price $/ton 713 542 1304 2079
Sources: CMAI, TopLine Analytics, and Alembic analysis, 2012
Note: The timing for Saudi Arabia and Asia is based on 2011 pricing for feedstock material. Their pricing has
remained constant over the period of this analysis.
Figure 4: Economic cost model of ethylene glycol
US
Saudi Recent Historical Asia US natural gas costs
reduced by 4.2x
Natural gas costs $/MMBTU 0.75 3 12.5
Crude oil costs $/BBL 100
Ethylene cost $/ton 466 323 1009 1760
Amount for 1 ton of HDPE 0.66 0.66 0.66 0.66
Ethylene cost 308 213 666 1162
Utilities 150 56 234 150
Direct cost 31 31 31 31
Other costs 35 35 35 35
Total costs 524 336 967 1378
Ethylene glycol price
Typical ethylene glycol margin 3.00%
reduced by 2.9x
Potential ethylene glycol price $/ton 540 346 996 1419
Sources: CMAI, TopLine Analytics, and Alembic analysis, 2012
Note: The timing for Saudi Arabia and Asia is based on 2011 pricing for feedstock material. Their pricing has
remained constant over the period of this analysis.
Cost economics of ethylene Cost economics of
to high-density polyethylene ethylene glycol
Polyethylene, the No. 1 plastic by The downstream effect for another
volume and value, is produced by high-volume ethylene derivative,
converting ethylene into long-chain ethylene glycol, shows the same
polymers. The cost of polyethylene potential for cost reductions, as seen
production in North America could in Figure 4.
decline, similar to the cost of ethylene
and natural gas (see Figure 3).
Based on our assumed price of $3.00
MMBTU for natural gas, the price
of polyethylene from US sources is
potentially 2.4 times less than the
historical cost.
6Figure 5: 2012 global ethylene cash cost by site
$1600
West
$1400
Northeast Europe
$1200 Asia
Southeast
$1000 Asia
U.S.
$800
Ethane U.S. Average
$600 2011
Alberta U.S. Gas Demand
$400 (Integrated)
$200
Middle East
$0
02 04 06 0 80 100 120 140 160
Cumulative capacity (million tons)
Source: Gary Adams, “Leveraging a Fractured Future,” presentation, IHS, Feb. 9, 2012
Shift in global dynamics The ethane chain in the
According to the World Bank’s Pink Middle East, Europe,
Sheet,9 the prices of natural gas in and Asia
2008 in Europe, $11.42/MBTU, Japan, While oil and gas companies in the
$16.00/MBTU, and the United States, United States are exploiting shale
$12.50/MBTU, were in the same gas technologies and reducing
ballpark; however, that was before their natural gas and NGL costs,
the shale gas boom in the United other regions are not as favored.
States, which made the US price more The Middle East ethane production
competitive in the global marketplace. chain is predominantly centered in
This dynamic, and the relatively Saudi Arabia, which has leveraged
high price of oil at $80 to $100 per its historically low-cost raw
barrel, has the potential to give the material sources to become a global
US chemicals industry a significant petrochemicals powerhouse. However,
competitive advantage globally. its newer ethylene production facilities
Whether this advantage is realized rely on an ethane-butane mix,
depends on a number of factors, which yields higher-priced ethylene
including the domestic tolerance for and other feedstock chemicals.
hydraulic fracturing and its waste These factors are serving to reduce
products, as well as the political and the country’s historic competitive
economic ramifications of exporting advantage. Figure 5 illustrates the
liquefied natural gas (LNG).10 global cash cost per site.
9 Development Prospects Group. “Commodity
Price Data,” The World Bank, May 3, 2012, Web
10 Michael Levi, “The Case for Natural Gas
Exports,” The New York Times, Aug. 16, 2012
7 Shale gas: Reshaping the US chemicals industryEurope, and to a lesser extent balance of trade as ethylene capacity
Asia, have a more limited supply comes on line.11 Several multinational
of ethane. Most of their ethylene oil and gas companies are investing in
capacity is produced from naphtha, building the infrastructure to export
an intermediate refined form of crude LNG. In addition, companies are in the
oil, which is more expensive than the early stages of negotiating long-term
Middle East ethane-butane mix and supply agreements with foreign entities
the US shale gas ethane. For upstream for LNG.
participants, these realities could
As these developments unfold, there
demand new strategies in managing
could be other changes. The East Coast
global supply and demand, balance
or Pacific Coast could emerge a hub for
of trade, pricing policies, and supply
export, based on the location of shale
chain economics for ethylene and
gas reserves and production facilities.
the corresponding downstream
And with low US ethane prices linked
derivatives. Armed with the lower-
to natural gas, some might explore
priced shale gas economics, the United
the option of using NGL tankers and
States could find itself among the
infrastructure to ship ethane.
low-cost ethylene and derivatives
producers. Over time, one impact
could be a favorable shift in the US
11 “America’s New Energy Reality,” The New York
Times, June 9, 2012
8Impact on chemicals and are making multibillion-dollar
industry segments investments in building new plants
to increase capacity.14 Recently, both
The United States is already a net
Dow Chemical15 and Chevron Phillips
exporter of ethylene derivatives, and
Chemical16 announced plans to build
the volume is expected to increase
ethylene production plants in Texas.
significantly. Together with low-cost
Middle East producers, the chemicals Shell Chemicals recently said it will
industry may see some economic build an ethane cracker in Monaca,
disruption in other regions that use Pennsylvania.17 This decision to build
crude oil to produce those products. in the Northeast, rather than along
This may cause the shutdown of the Gulf Coast, could have significant
less lucrative assets and lead to the ramifications and affect planning for
imposition of trade barriers by some other gas companies. Some questions
countries in an attempt to protect to be considered include the following:
local production.
• Can the Northeast region support
Major oil and gas companies and another ethane cracker?
upstream commodity industry
• Will Ohio, West Virginia, or
participants are already acting
Pennsylvania become a new
on plans to take advantage of
natural gas and NGL hub like Mont
shale gas opportunities. Some are
Belvieu, Texas?
negotiating mergers, acquisitions,
and divestitures; analyzing their • Could a Northeast region hub shift
portfolios, pricing policies, and the industry economics for these
supply chains; and conducting commodities?
customer service analyses.12 They
• What existing pipelines can be
are considering whether to restart
reversed, and where should new
mothballed assets, invest in greenfield
ones be constructed?
projects, form strategic alliances,
and expand and upgrade existing • Will oil and gas explorers continue
assets. For many of these companies, drilling in the Northeast region,
today’s focus is on execution of or will they shift drilling assets to
large capital projects, identification other liquid-rich regions, such as
of engineering and construction the Bakken basin?
resources, and establishment of
strategic sourcing agreements with • Which state legislatures are likely
NGL providers, exporting options, to ban or limit hydraulic fracturing
and material logistics. With low-cost for environmental reasons, as New
and abundant ethylene, coupled York has done?18
with a slowdown in the growth of • How might state regulations
domestic demand, US companies and tax policies affect drilling
are looking abroad for expansion procedures, decisions, and
opportunities.13 Some companies profitability?
have clearly stated this intention
14 Emily Pickrell, “New Chevron Phillips plant boosts
Texas as chemical hub,” Fuel Fix, June 14, 2012, Web
15 “Dow to Build New Ethylene Production Plant at Dow
Texas Operations,” The Dow Chemical Company,
April 19, 2012, Web
16 Emily Pickrell, “New Chevron Phillips plant boosts
Texas as chemical hub,” Fuel Fix, June 14, 2012, Web
17 “US Appalachian petrochemical project,” Shell
12 “Dow Sees U.S. Ethylene Advantage Widening,” Chemicals, Aug. 1, 2012, Web
Chemical Week, April 30, 2012, Web 18 Mary Esch, “New York Fracking Ban: Cuomo’s
13 “ESAI: Shale development to boost US ethylene Energy Proposal Polarizes Supporters and
exports,” Oil & Gas Journal, Aug. 6, 2012, Web Opponents,” Huffington Post, June 13, 2012, Web
9 Shale gas: Reshaping the US chemicals industryFurther downstream, specialty Lower pricing could help US
chemical entities are starting to feel manufacturers competitively. Certain
the effects of natural gas and NGL manufacturers of products with high
prices on their business models. As ethylene content, such as downstream
manufacturers replace petroleum- specialty chemical manufacturers,
based raw materials with products packaging manufacturers, and
based on ethylene, their cost structure plastic bottle producers, could have
will change significantly, as will supply a big advantage. New markets and
and demand for certain products. products may open up. Ethylene-based
chemicals may also replace other
A case in point is butadiene, a
chemicals where technically possible.
petroleum-based chemical used in
As these changes occur, companies
the manufacture of rubber tires.
may want to carefully manage the
While butadiene prices are subject
supply chain and their innovation
to short-term supply and demand
portfolio. They may also want to create
considerations, over the longer term,
strategic alliances through mergers
the price of butadiene is expected
and acquisitions to supplement
to rise because of the shift to cost-
their efforts.
advantaged natural gas liquids as
feedstock to ethylene plants.19 This In a similar manner, greater emphasis
pattern is likely to be repeated for on commercial activities in such areas
other petroleum-based raw materials, as product portfolio management,
many of which are used in building, innovation, pricing policies, logistics,
construction, adhesives, paint, and cost reduction will be essential to
coatings, plastics, packaging, and maintain global competitive positions.
carpeting. The chemicals industry’s traditional
response—finding new substitutes—
As the commercial distribution
will advance on two fronts.
of ethane and ethane-based raw
materials increases, it could trigger The first will be to find a substitute
new innovations and investment in the cost-advantaged ethylene
in new technologies. Research and chain. The second will be to
development initiatives leveraging produce these products with new
ethylene-based chemistries that technologies in a purposeful manner
replace petroleum-based products as opposed to a by-product production
may predominate. Companies might process, as in the case of propane
also look for longer-term sourcing dehydrogenation to propylene. And
relationships and partnerships with advances in technology often draw
raw material suppliers to help with new competitors as well. This is likely
developing new products. to be magnified as competitors seek
technologies to produce a single
molecule as opposed to previous
technologies that produced a wide
range of molecules, requiring steps
In the United States, ethylene derivative supply that added to production costs and
is expected to greatly outstrip demand, driving increased time to market.
down pricing. Finally, with lower-cost ethylene
derivatives, a redirection of research
and development initiatives centered
on leveraging ethylene-based
chemistries warrants consideration.
19 “TPC Group Reports Second Quarter 2012
Financial Results,” TPC Group, Aug. 2, 2012, Web
10The ‘wave of change’ based on the competitive advantage
beyond the chemicals low-cost, natural gas-based
industry feedstocks brings to the production
of certain products, such as plastics,
If the changes brought about by performance materials, and advanced
shale gas take hold in the chemicals materials.21 Likely targets will be
industry, they will create a need for relatively simple products such as
specialty steels, reactors, separation toothpaste tubes, disposable medical
columns, pipes, compressors, pumps, syringes, or pens that can be produced
valves, fittings, control systems, on high-speed lines with robotics,
storage tanks, and other chemical requiring little labor. In the electronic
processing equipment, as well as device industry, we are seeing the
the services of engineering and manufacturing of more demanding
construction firms. products, such as touch-sensitive
Given the law of supply and demand, screens, higher-strength films,
increases in ethylene-based capacity mobility devices, and miniaturized
could yield a decline in chemicals components, return to the United
pricing. Since chemicals are used in States.22 Additionally, supplying US
an estimated 90% of all manufactured customers with US products simplifies
products, lower chemicals prices could the long and costly supply chain.
bring about a reduction in costs for All of these scenarios present
US manufacturers. Another possible challenges and opportunities for
outcome is that chemical products will manufacturing companies. We have
increasingly become a substitute for seen the changes in natural gas prices
more expensive materials, such and how those changes flow through
as metals, glass, wood, leather, the chemicals industry. Figure 6
and textiles. illustrates the potential ethane impact
Partial substitution could occur in on manufacturing. Whether these
complex manufactured products. For opportunities are realized will depend
example, while today automobiles on how downstream manufacturers
have a 20% chemical content, will be positioned to capture the
that percentage could rise as some cost-saving opportunities. Successful
manufacturers reengineer parts to manufacturing companies are already
increase chemical content, thereby reexamining their strategies, product
decreasing weight and costs. innovation portfolio, supply chain
planning, and other areas. Some of
It is also possible that lower energy the changes they face might be as
costs could bring some manufacturing dramatic as the events now unfolding
back to the United States.20 Dow in the chemicals industry.
Chemical’s decision to build an
ethylene plant in Texas is in part
21 David Muir, “Companies Move Manufacturing
Jobs Back to America,” ABC News,
Feb. 22, 2012, Web
22 “Samsung to Invest $4 Billion More on US Chip
20 “Petrochemicals,” Chemical Week, March 27, 2011 Plant,” Reuters, Aug 21, 2012, Web
11 Shale gas: Reshaping the US chemicals industryFigure 6: Ethane impact on manufacturing industry value chain
Low Density Polyethylene Food Packaging, Film,
(LDPE) and Linear Low Trash Bags, Diapers,
Density Polyethylene Toys, Housewares
High Density Poly- Housewares, Crates,
ethylene (HDPE)
Polyethylene (HDPE) Drums, Bottles, Food
Containers
Siding, Window
Ethylene Dichloride Vinyl Chloride PVC
Frames, Swimming
Opportunity for up to
Pool Liners, Pipes
60% raw material cost
advantage as a result of
wet shale gas basins
Ethylene Oxide Ethylene Glycol Automotive Anti-
freeze
Downstream
opportunity for
60% raw material
Ethane Ethylene Fibers Pantyhose, Cloth- cost advantage
ing, Carpets “should” translate
through entire
value chain. But
Polyester Resin Bottles will it be realized?
Misc.
Ethylbenzene Styrene Polystyrene Packaging
Resins
Styrene Acry- Instrument Lens-
Linear Alcohols Detergent lonitrile Resins es, Housewares
Styrene Tires, Footwear,
Butadiene Sealants
Rubber
Vinyl Acetate Adhesives,
Coatings,
Textiles/paper Styrene Carpet Backing,
Finishing, Butadiene Paper
Flooring Latex
Misc. Chemicals Misc.
Sources: “Shale Gas and New Petrochemicals Investment: Benefits for the Economy, Jobs, and US
Manufacturing,” American Chemistry Council, March 2012, PwC and TopLine Analytics
12The implications of the shale gas • Will the US chemicals industry
Conclusion boom for any chemical company are economics set off a round of
varied and complicated. While some protection among disadvantaged
companies may already be realizing countries?
gains in profitability and shareholder
• What is the company’s global versus
value and creating new opportunities
domestic strategy? What are the tax
at home and abroad, there is no single
and transfer pricing implications?
model for success. Companies need to
consider their individual situation and • Which strategies for mergers,
business options and understand the acquisitions, and partnerships
risks and opportunities being presented should the company be
by the abundance of shale gas. considering?
• How will shale gas affect the
Questions that companies
company’s supply chain in terms
should consider include the
of cost reductions and risk
following:
parameters?
• Which new energy strategies
• What are the new and emerging
should the company explore? How
business models for industry value
can it best take advantage of shale
chain participants?
gas availability?
• How quickly will manufacturers’
• How should the company allocate
strategic sourcing capabilities ramp
investment dollars among the
up to capture and translate the
different fuel sources? Where will it
lower costs of raw materials into
get the greatest return in the short
their cost structures?
and longer term?
• If consumer prices drop as a result
• Is the company employing the most
of lower-priced fuel, how will that
effective and efficient sourcing
affect business?
strategies for energy and raw
materials? • What new commercial
opportunities are emerging, and
• Should the company shift R&D
how should the company price its
and product innovation dollars to
products?
capture opportunities presented by
the availability of shale gas?
13 Shale gas: Reshaping the US chemicals industryPwC US helps organizations and individuals create the value they’re looking
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14www.pwc.com/us/chemicals To have a deeper conversation about the issues in this paper, please contact: Anthony Scamuffa Partner, US Chemicals leader 267 330 2421 anthony.j.scamuffa@us.pwc.com Mark Lustig Principal 646 471 3081 mark.lustig@us.pwc.com Tavor White Principal 646 471 3354 tavor.s.white@us.pwc.com Robert W. McCutcheon Partner, US Industrial Products Leader 412 355 2935 robert.w.mccutcheon@us.pwc.com Garrett Gee Director 267 330 1576 garrett.gee@us.pwc.com Contributing author to this white paper: Tom Gellrich TopLine Analytics © 2012 PwC. All rights reserved. “PwC” and “PwC US” refer to PricewaterhouseCoopers LLP, a Delaware limited liability partnership, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. This document is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. LA-13-0069
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