Effects of Shale Gas on the North American Converting Industry
Recent announcements by Shell, Chevron Phillips, Dow and NOVA make it very clear that the polyolefins market in North America will change drastically over the next decade.
The suppliers are banking that the feedstock cost advantage of ethylene from shale-gas-derived ethane will be sustainable and will be the future of the industry, but there are still a lot of questions about what exactly all this means for converters of polyethylene.
Townsend Solutions has a team of research experts dedicated to looking at the impact shale gas will have on the polyethylene industry as they put together Townsend Solutions’ North American Collaborative Market Study: The Effects of Shale Gas on the North American Converting Industry. Some of the research team’s early findings are quite interesting.
The primary effects of the new supply will be felt in the area surrounding the Marcellus shale gas reserve – which will include the Northeastern, Mid-Atlantic and Midwest United States. While there is already a heavy concentration of converters in those areas, the increased PE supply is sure to attract more, and Townsend’s researchers are digging in to discover exactly what that increased competition will mean in terms of everything from PE prices to logistics issues and availability of equipment. Also, beyond the regional impacts, researchers are investigating the potential for inter-material competition, import-export changes and much more.
“The recent shale gas discoveries have cast a lot of uncertainty on the North American and global PE markets, and there is great potential for the downstream market,” said David Anderson, Business Director – Global Polyolefin Consulting at Townsend. “We are excited about this study and exploring the implications of potentially less expensive ethylene monomer on the supply of PE polymers and how this will impact plastic converting business growth and the shifting business dynamics surrounding where plastic goods are produced.”
For more information about Townsend Solutions’ North American Collaborative Market Study: The Effects of Shale Gas on the North American Converting Industry, contact Frances Davidson at +1 281 873 8733 or email fdavidson@townsendsolutions.com.
The suppliers are banking that the feedstock cost advantage of ethylene from shale-gas-derived ethane will be sustainable and will be the future of the industry, but there are still a lot of questions about what exactly all this means for converters of polyethylene.
Townsend Solutions has a team of research experts dedicated to looking at the impact shale gas will have on the polyethylene industry as they put together Townsend Solutions’ North American Collaborative Market Study: The Effects of Shale Gas on the North American Converting Industry. Some of the research team’s early findings are quite interesting.
The primary effects of the new supply will be felt in the area surrounding the Marcellus shale gas reserve – which will include the Northeastern, Mid-Atlantic and Midwest United States. While there is already a heavy concentration of converters in those areas, the increased PE supply is sure to attract more, and Townsend’s researchers are digging in to discover exactly what that increased competition will mean in terms of everything from PE prices to logistics issues and availability of equipment. Also, beyond the regional impacts, researchers are investigating the potential for inter-material competition, import-export changes and much more.
“The recent shale gas discoveries have cast a lot of uncertainty on the North American and global PE markets, and there is great potential for the downstream market,” said David Anderson, Business Director – Global Polyolefin Consulting at Townsend. “We are excited about this study and exploring the implications of potentially less expensive ethylene monomer on the supply of PE polymers and how this will impact plastic converting business growth and the shifting business dynamics surrounding where plastic goods are produced.”
For more information about Townsend Solutions’ North American Collaborative Market Study: The Effects of Shale Gas on the North American Converting Industry, contact Frances Davidson at +1 281 873 8733 or email fdavidson@townsendsolutions.com.
Posted by Plastic Market Data at 28 Jan 2012 
Categories: Shale Gas, Resin Pricing, Polyethylene, Processors, Imports and Exports, Ethylene, Resin Producer Capacity and Supply, Supply and Demand
Tags: Townsend PE Demand Plastic Prices Resin Supply Ethylene Converters Feedstock Processors Dow Production Producers Shale Gas Shell Chevron Phillips Nova
Categories: Shale Gas, Resin Pricing, Polyethylene, Processors, Imports and Exports, Ethylene, Resin Producer Capacity and Supply, Supply and Demand
Tags: Townsend PE Demand Plastic Prices Resin Supply Ethylene Converters Feedstock Processors Dow Production Producers Shale Gas Shell Chevron Phillips Nova
Comments