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Petrochemical Industry in the US - Abundant Feedstock Supply from the Shale Reserves to Revive the US Petrochemical Industry
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Petrochemical Industry in the US - Abundant Feedstock Supply from the Shale Reserves to Revive the US Petrochemical Industry

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    Petrochemical Industry in the US - Abundant Feedstock Supply from the Shale Reserves to Revive the US Petrochemical Industry Petrochemical Industry in the US - Abundant Feedstock Supply from the Shale Reserves to Revive the US Petrochemical Industry Document Transcript

    • Petrochemical Industry in the US - Abundant Feedstock Supplyfrom the Shale Reserves to Revive the US PetrochemicalIndustryReport Details:Published:December 2012No. of Pages: 62Price: Single User License – US$3995Petrochemical Industry in the US - Abundant Feedstock Supply from the Shale Reserves toRevive the US Petrochemical IndustrySummaryGlobalData, the industry analysis specialist, has released its latest research, “PetrochemicalIndustry in the US - Abundant Feedstock Supply from the Shale Reserves to Revive the USPetrochemical Industry”. The study comes from the company’s petrochemical research group andprovides in-depth analysis of the US petrochemicals industry, highlighting major features andexplaining how the shale gas revolution is driving its revival. The report gives the historic andforecast demand and production figures and also discusses the feedstock supply scenario.Additionally, it profiles major liquid-rich shale plays in the US and explains the factors encouragingthe growth of drilling activities in these shale plays. It has been built using data and informationsourced from proprietary databases, primary and secondary research and in-house analysis byGlobalData’s research team of industry experts.The US petrochemicals industry is set to make a spectacular comeback after suffering from lowdemand and high feedstock costs for most of the previous decade. Emergence of the Middle Eastas a hub of basic petrochemicals production further eroded its competitiveness. In the middle ofthe last decade, the discovery of shale gas changed the dynamics of the US petrochemicalsindustry by leading to the revival of the natural gas industry which improved the ethane supply andcreated high profit margins at the end of 2011 and 2012. The shale plays are steadily taking centerstage in the natural gas industry and so the petrochemicals industry is also hoping for an abundantsupply of ethane feedstock in the future.Drillers in the US are currently focusing on liquid-rich shale plays such as Eagle Ford, Barnett,Bakken and Marcellus, which, in addition to natural gas, provide valuable Natural Gas Liquids
    • (NGL, a mixture of hydrocarbon gases such as ethane, propane, butane and isobutane), as by-product. As a result, NGL production in the US increased from 620 Million Barrels (MMbbl) in 2005to 809 MMbbl in 2011. Ethane production has also received a boost from high NGL production andhas increased from 236 MMbbl in 2005 to 338 MMbbl in 2011. It is expected to increase further asdrilling in the liquid-rich shale areas continues into the future.ScopeThe report provides in-depth analysis of the opportunities and challenges facing manufacturers ofpetrochemicals in the US and abroad. Its scope includes -- Geological and economic characteristics of major NGL-rich shale plays in the US- Historic and forecast basic petrochemicals production and consumption- Historic and forecast ethylene capacity in the US- NGL and ethane production in the US- Natural gas production and consumption in the US and the share of shale gas in the total naturalgas production- Natural gas price changes in the last decade- Planned ethylene plants based on shale gas- Major shale gas-based investments by petrochemicals companies in the USReasons to buyThe report will enhance your decision-making capability by allowing you to -- Understand the ethane supply scenario in the US- Develop market strategies with the help of specific insights into feedstock supply in the US- Identify opportunities in the US petrochemicals industry with the help of specific insights intofuture investments in the US- Increase future revenue and profitability with the help of insights into future opportunities andcritical success factors in the US petrochemicals industry- Understand the current and likely future competitive scenarioGet your copy of this report @http://www.reportsnreports.com/reports/209130-petrochemical-industry-in-the-us-abundant-feedstock-supply-from-the-shale-reserves-to-revive-the-us-petrochemical-industry.htmlMajor points covered in Table of Contents of this report include1 Table of Contents 41.1 List of Tables 61.2 List of Figures 72 Introduction 82.1 Overview 82.2 GlobalData Report Guidance 9
    • 3 Shale Gas - A Vital Source of Energy Made Available Through Continuous TechnologicalEvolution 103.1 What is Shale Gas? 103.1.1 Shale Gas is extracted through Horizontal Drilling and Hydraulic Fracturing 103.1.2 Natural Gas Liquids Fractionated from the Shale Gas are Used in Petrochemical Production113.1.3 The US has the Second Largest Shale Gas Reserves in the World 113.2 Increasing Shale Gas Production has Increased Natural Gas Liquid Supply 123.2.1 Barnett Shale Play is the Oldest and the Largest Natural Gas Liquid-producing Shale in theUS 123.2.2 Eagle Ford is One of the Most Liquid-rich Shale Plays and has the Necessary AssociatedInfrastructure 143.2.3 Marcellus Shale Play will Supply Huge Quantities of Ethane after the Completion of PlannedPipelines and Planned Projects 153.2.4 Bakken Shale is Primarily an Oil Play with a High Natural Gas Liquid Content 174 The US Natural Gas Industry Witnessed a Turnaround after Shale Gas SignificantlyEnhanced Production 194.1 Historic US Natural Gas Production and Consumption, 1970-2000 194.2 Natural Gas Imports Continued to Increase until Advanced Drilling Technologies MadeProduction from Shale Plays Viable 204.2.1 Natural Gas Supply Shortage until 2005 204.2.2 Breakthrough in Drilling Technology Improved Natural Gas Production 204.2.3 Shale Plays have created a Plentiful Supply of Natural Gas Production for the Rest of theDecade 224.3 Natural Gas Prices Fell as a Result of Excess Production 234.4 Lower Natural Gas Prices have Forced Producers to Seek Liquid-rich Shale Plays 245 Turnaround in the Natural Gas Industry to Enhance Ethane Supply for the USPetrochemicals Industry 255.1 The US Petrochemicals Industry Became Less Competitive with the Emergence of the MiddleEast as the Most Economic Production Center 255.2 The US has been Overtaken by China as the Leader of the Global Petrochemicals Industry 255.2.1 China has emerged as the Leader of the Global Petrochemicals Industry in the Last Decade255.2.2 Slower US Petrochemicals Demand Growth due to Mature Domestic Market 265.2.3 Chinese Production Increased at an Unprecedented Pace to Fulfill Domestic Demand 285.3 US Poised to Regain Strength as Shale Reserves will Provide Abundant Supply of EthaneFeedstock 305.4 Lower Cost of Ethane has Driven Ethylene Margins in the US 325.5 More Ethane Crackers are Being Planned in the US to Benefit from the AdvantageousFeedstock Scenario 345.6 Increase in Natural Gas Liquid Production has Boosted Fractionation Capacity 355.7 Increasing Investment will Increase Ethylene Capacity Substantially by 2017 36
    • 6 Government Regulation and Inadequate Pipeline Infrastructure May Hamper the EthaneSupply in the US 386.1 Tightening Fracking Regulations to Make Drilling More Difficult 386.2 Pipeline Infrastructure Must be Improved to Bring Ethane to Petrochemical Markets 407 Major Companies Utilizing Shale Resources for Expanding Petrochemicals Business 417.1 The Dow Chemical Company 417.1.1 Business Overview 417.1.2 Dow’s Ethylene Capacity by Country 427.1.3 Dow’s Active Olefins Capacity in the US 437.1.4 Dow’s Shale Gas-based Investments in the US 447.2 Chevron Phillips Chemical Company LLC 457.2.1 Business Overview 457.2.2 CPC’s Ethylene Capacity by Country 457.2.3 CPC’s Active Olefins Capacity in the US 467.2.4 CPC’s Shale Gas-based Investments in the US 467.3 ExxonMobil Corporation 477.3.1 Business Overview 477.3.2 ExxonMobil’s Ethylene Capacity by Country 487.3.3 ExxonMobil’s Active Olefin Capacity in the US 497.3.4 ExxonMobil’s Shale Gas-based Investments in the US 497.4 The Royal Dutch Shell 507.4.1 Business Overview 507.4.2 Shell’s Ethylene Capacity by Country 517.4.3 Shell’s Active Olefins Capacity in the US 527.4.4 Shell’s Shale Gas-based Investments in the US 527.5 Sasol Limited 537.5.1 Business Overview 537.5.2 Sasol’s Ethylene Capacity by Country 537.5.3 Sasol’s Active Olefin Capacity in the US 547.5.4 Sasol’s Shale Gas-based Investments in the US 548 Latest Trends in the US Petrochemicals Industry Triggered by Shale Gas Developments558.1 Improved Ethane Supplies will Drive the Use of On-Purpose Technologies in the Future 558.2 Ethane from Marcellus Shale will Fulfill Demand from Overseas Markets 568.3 Utica Shale May Emerge as Another Source of Ethane 579 The US Petrochemicals Industry has a Bright Future as the Advantaged FeedstockSupply will Remain in the Long Term 5810 Appendix 5910.1 Abbreviations 5910.2 Definitions 5910.2.1 Installed Capacity 5910.2.2 Process 59
    • 10.2.3 Technology 5910.3 Bibliography 5910.4 GlobalData’s Research Methodology 6110.4.1 Coverage 6110.4.2 Secondary Research 6110.4.3 Primary Research 6210.4.4 Expert Panel Validation 6210.5 Contact Us 6210.6 Disclaimer 621.1 List of TablesTable 1: Natural Gas Industry, Global, Technically Recoverable Shale Gas Resources (tcf), 201112Table 2: Natural Gas Industry, US, Geological and Economic Characteristics of Barnett Shale Play13Table 3: Natural Gas Industry, US, Geological and Economic Characteristics of Eagle Ford ShalePlay 14Table 4: Natural Gas Industry, US, Geological and Economic Characteristics of Marcellus ShalePlay 15Table 5: Natural Gas Industry, US, Geological and Economic Characteristics of Bakken Shale Play17Table 6: Natural Gas Industry, US, Production and Consumption (tcf), 1970-2000 20Table 7: Natural Gas Industry, US, Share of Shale Gas in Total Natural Gas Production (%), 2000-2035 21Table 8: Natural Gas Industry, US, Production and Consumption (tcf), 2001-2011 22Table 9: Natural Gas Industry, US, Average Quarterly Natural Gas Price ($/MMbtu), 2000-2012 24Table 10: Petrochemical Industry, US and China, Basic Petrochemicals Demand (MMtpa), 2000-2016 27Table 11: Petrochemical Industry, US and China, Basic Petrochemicals Production (MMtpa),2000-2016 29Table 12: Petrochemical Industry, US, Ethane Production (MMbbl), 2000-2012 31Table 13: Royal Dutch Shell and ConocoPhillips, US, Ethylene Margins ($/Ton), January 2010-April 2012 32Table 14: Ethylene Industry, Global, Cost of Production ($/Ton), 2005 and 2011 33Table 15: Petrochemicals Industry, US, Shale Gas-based Ethylene Capacity Expansion Details,2012-2017 34Table 16: Natural Gas Industry, US, NGL Production (MMbbl), 2000-2011 36Table 17: Ethylene Industry, US, Inactive Plants, 2009 36Table 18: Ethylene Industry, US, Capacity (MMtpa), 2000-2017 37Table 19: Natural Gas Industry, US, Number of Pending Bills Related to Hydraulic Fracturing, byState, As of May 30, 2012 39Table 20: The Dow Chemical Company, Key Facts 41
    • Table 21: The Dow Chemical Company, Ethylene Capacity by Country (%), 2011 42Table 22: The Dow Chemical Company, US, Active Olefins Plants, 2011 43Table 23: The Dow Chemical Company, US, Shale Gas-based Planned Projects, 2012-2018 44Table 24: Chevron Phillips Chemical Company LLC, Key Facts 45Table 25: Chevron Phillips Chemical Company LLC, Ethylene Capacity by Country (%), 2011 46Table 26: Chevron Phillips Chemical Company LLC, US, Active Olefins Plants, 2011 46Table 27: Chevron Phillips Chemical Company LLC, US, Shale Gas-based Planned Projects,2013-2018 47Table 28: ExxonMobil Chemical Company, Key Facts 47Table 29: ExxonMobil Chemical Company, Ethylene Capacity by Country (%), 2011 48Table 30: ExxonMobil Chemical Company, US, Active Olefins Plants, 2011 49Table 31: ExxonMobil Chemical Company, Shale Gas-based Planned Projects Details in the US,2013-2016 49Table 32: Royal Dutch Shell plc, Key Facts 50Table 33: Shell Chemical LP, Ethylene Capacity by Country (%), 2011 51Table 34: Shell Chemical LP, US, Active Olefins Plants, 2011 52Table 35: Sasol Limited, Key Facts 53Table 36: Sasol Limited, Ethylene Capacity by Country (%), 2011 54Table 37: Sasol Limited, US, Active Olefins Plants, 2011 54Table 38: Cracker Yield by Feedstock (%) 55Table 39: Propylene Industry, US, Planned Plant Details, 2012 561.2 List of FiguresFigure 1: Natural Gas Industry, US, Shale Gas Production Process 10Figure 2: Natural Gas Industry, Global, Technically Recoverable Shale Gas Resources (tcf), 201111Figure 3: Natural Gas Industry, US, Barnett Shale Area 13Figure 4: Natural Gas Industry, US, Eagle Ford Shale Area 15Figure 5: Natural Gas Industry, US, Marcellus Shale Area 16Figure 6: Natural Gas Industry, US, Bakken Shale Area 18Figure 7: Natural Gas Industry, US, Production and Consumption (tcf), 1970-2000 19Figure 8: Natural Gas Industry, US, Share of Shale Gas in Total Natural Gas Production (%),2000-2035 21Figure 9: Natural Gas Industry, US, Production and Consumption (tcf), 2001-2011 22Figure 10: Natural Gas Industry, US, Average Quarterly Natural Gas Price ($/MMbtu), 2000-201223Figure 11: Petrochemical Industry, US and China, Basic Petrochemicals Demand (MMtpa), 2000-2016 26Figure 12: Petrochemical Industry, US and China, Basic Petrochemicals Production (MMtpa),2000-2016 28Figure 13: Petrochemical Industry, US, Ethane Production (MMbbl), 2000-2012 30Figure 14: Royal Dutch Shell and ConocoPhillips, US, Ethylene Margins ($/Ton), January 2010-
    • April 2012 32Figure 15: Ethylene Industry, Global, Cost of Production ($/Ton), 2005 and 2011 33Figure 16: Natural Gas Industry, US, NGL Production (MMbbl), 2000-2011 35Figure 17: Ethylene Industry, US, Capacity (MMtpa), 2000-2017 37Figure 18: Natural Gas Industry, US, States with Hydraulic Fracturing Disclosure Requirements,As of May 30, 2012 38Figure 19: The Dow Chemical Company, Ethylene Capacity by Country (%), 2011 42Figure 20: Chevron Phillips Chemical Company LLC, Ethylene Capacity by Country (%), 2011 45Figure 21: ExxonMobil Chemical Company, Ethylene Capacity by Country (%), 2011 48Figure 22: Shell Chemical LP, Ethylene Capacity by Country (%), 2011 51Figure 23: Sasol Limited, Ethylene Capacity by Country (%), 2011 53Figure 24: Utica Shale Area, 2012 57Contact: sales@reportsandreports.com for more information.