May 2013
SHALE GAS, COMPETITIVENESS,
AND NEW U.S. CHEMICAL
INVESTMENT: AN ANALYSIS
BASED ON ANNOUNCED
PROJECTS
The full AC...
Shale Boom Driving NewU.S. Investment
NorthAmericanCompetitiveAdvantageSustainedthrough2020
Data provided with
permission ...
U.S. Shale Gas Chemical Investment
Manufacturing
renaissance due to
increased access to
natural gas from shale
Downstream ...
US Chemical Industry Growth
Outpaces Western Europe
60
70
80
90
100
110
120
130
1990 1995 2000 2005 2010 2015 2020
By 2020...
New ACC Study: US Chemical Industry
Output from Shale-Related Investments
Billions of 2012 Dollars
• By 2020, additional o...
During Investment Phase 2010-2020*
(Temporary)
From Higher Chemical Industry Output
in 2020 (Permanent)
Total
Jobs
Average...
$14B
in NEW, PERMANENT
federal, state, and local
tax revenue from
increased chemical
industry output
(by 2020)
$20B
in NEW...
Access: Allow access to natural gas reserves on government
and private lands.
Infrastructure: Ensure reliable infrastructu...
Shale Gas Study ~ American Chemistry Council
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Shale Gas Study ~ American Chemistry Council

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The American Chemistry Council’s new report examines the economic benefits of U.S. chemical industry investments linked to robust and low-cost supplies of natural gas from shale. Renewed competitiveness in America’s chemical industry has led dozens of companies to announce that they will expand U.S. production capacity – creating jobs, growing payrolls, and enabling new tax revenue.

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Shale Gas Study ~ American Chemistry Council

  1. 1. May 2013 SHALE GAS, COMPETITIVENESS, AND NEW U.S. CHEMICAL INVESTMENT: AN ANALYSIS BASED ON ANNOUNCED PROJECTS The full ACC report is available http://chemistrytoenergy.com/shale-study.
  2. 2. Shale Boom Driving NewU.S. Investment NorthAmericanCompetitiveAdvantageSustainedthrough2020 Data provided with permission from IHS Global Insight  Affordable, competitively priced natural gas is driving significant new capital investment in the US manufacturing sector  Long-term, sustained opportunity in feedstock supply and cost  51% of new, publicly- announced chemical industry investment is from firms based outside the US
  3. 3. U.S. Shale Gas Chemical Investment Manufacturing renaissance due to increased access to natural gas from shale Downstream partners are more competitive than ever Nearly 100 projects announced as of March 2013 $72 billion in potential chemical industry capital investments $67 billion in additional output by 2020
  4. 4. US Chemical Industry Growth Outpaces Western Europe 60 70 80 90 100 110 120 130 1990 1995 2000 2005 2010 2015 2020 By 2020, US chemical output is 21%-23% higher than Western Europe. Western Europe Chemicals excl. Pharmaceuticals - Volume Index of Production (2007=100) Sources: Eurostat, FRB, ACC analysis U.S.
  5. 5. New ACC Study: US Chemical Industry Output from Shale-Related Investments Billions of 2012 Dollars • By 2020, additional output from shale- related chemical investments generates $66.8 billion in additional chemical industry shipments. • This is an ongoing, permanent upward shift in the level of shipments.
  6. 6. During Investment Phase 2010-2020* (Temporary) From Higher Chemical Industry Output in 2020 (Permanent) Total Jobs Average Jobs Added Per Year Payroll ($ Billion) Output ($ Billion) Total Jobs Payroll ($ Billion) Output ($ Billion) Direct 485,054 44,096 $30.7 $71.7 46,359 $4.9 $66.8 Indirect 258,039 23,458 $16.4 $55.9 264,111 $18.9 $100.4 Induced 442,233 40,233 $20.8 $66.2 226,272 $10.6 $33.9 Total 1,185,326 107,757 $67.9 $193.9 536,741 $34.4 $201.1 NewACC Study: Economic Contributions from Announced Chemical Industry Investments in U.S. *Because the investment occurs over a multi-year period, investment phase jobs should be interpreted as work-year jobs. This is done to avoid double-counting the same job in multiple years.
  7. 7. $14B in NEW, PERMANENT federal, state, and local tax revenue from increased chemical industry output (by 2020) $20B in NEW federal, state, and local tax revenue during investment phase (2010-2020) New ACC Study: Tax Revenue Benefits
  8. 8. Access: Allow access to natural gas reserves on government and private lands. Infrastructure: Ensure reliable infrastructure to transport supplies State Regulations: Implement responsible state-based regulations that avoid undue restrictions on natural gas supplies Tax Treatment: Minimize cost and reduce complexity for businesses. Maintain accelerated depreciation in tax policy Policies Needed to Realize Potential

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