Monday, October 10, 2011

Natural gas future grows brighter in the US

Natural gas is the chemicals industry as flour is to a bakery.
Cal Dooley president of American Chemical Council 

The impact of shale gas is not fully known, but it will change the US. recoverable shale gas could be as high as 862,000 bn cubic feet. This is the second highest in the world. China has the largest but other large shale gas deposits are in Argentina, Mexico, and South Africa. The US deposits are across number of fields, Marcellus, Utica in the East, Barnett in Texas and Haynesville in Texas and Louisiana. 

Ethylene costs in the US are lowest in the world outside of the Middle East given low natural gas costs. Japan spot prices are four times greater than prices in the US. The UK has natural gas costs which are twice the US. 

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