• 2 days U.S. On Track To Unseat Saudi Arabia As No.2 Oil Producer In the World
  • 2 days Senior Interior Dept. Official Says Florida Still On Trump’s Draft Drilling Plan
  • 3 days Schlumberger Optimistic In 2018 For Oilfield Services Businesses
  • 3 days Only 1/3 Of Oil Patch Jobs To Return To Canada After Downturn Ends
  • 3 days Statoil, YPF Finalize Joint Vaca Muerta Development Deal
  • 3 days TransCanada Boasts Long-Term Commitments For Keystone XL
  • 3 days Nigeria Files Suit Against JP Morgan Over Oil Field Sale
  • 3 days Chinese Oil Ships Found Violating UN Sanctions On North Korea
  • 3 days Oil Slick From Iranian Tanker Explosion Is Now The Size Of Paris
  • 4 days Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 4 days Venezuelan Output Drops To 28-Year Low In 2017
  • 4 days OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 4 days Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 4 days Kinder Morgan Delays Trans Mountain Launch Again
  • 4 days Shell Inks Another Solar Deal
  • 5 days API Reports Seventh Large Crude Draw In Seven Weeks
  • 5 days Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 5 days EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 5 days IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 5 days Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 5 days Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 5 days Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 5 days Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 5 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 5 days Norway Grants Record 75 New Offshore Exploration Leases
  • 6 days China’s Growing Appetite For Renewables
  • 6 days Chevron To Resume Drilling In Kurdistan
  • 6 days India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 6 days India’s Reliance Boosts Export Refinery Capacity By 30%
  • 6 days Nigeria Among Worst Performers In Electricity Supply
  • 6 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 6 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 7 days Saudis To Award Nuclear Power Contracts In December
  • 7 days Shell Approves Its First North Sea Oil Project In Six Years
  • 7 days China Unlikely To Maintain Record Oil Product Exports
  • 7 days Australia Solar Power Additions Hit Record In 2017
  • 7 days Morocco Prepares $4.6B Gas Project Tender
  • 7 days Iranian Oil Tanker Sinks After Second Explosion
  • 9 days Russia To Discuss Possible Exit From OPEC Deal
  • 9 days Iranian Oil Tanker Drifts Into Japanese Waters As Fires Rage On
New Breakthrough Boosts Solar Fuel Efficiency

New Breakthrough Boosts Solar Fuel Efficiency

A new breakthrough from researchers…

Oil Prices Book Biggest Weekly Loss Since October

Oil Prices Book Biggest Weekly Loss Since October

Oil prices retreated somewhat this…

US Plastic Industry Set to Grow with $30 Billion Investment in New Factories

US Plastic Industry Set to Grow with $30 Billion Investment in New Factories

We often think of oil and gas being used to provide fuel for power plants in order to create electricity, or to create petrol and diesel for running vehicles; but oil and gas are also vital for other products such as producing plastics.

Due to the shale gas boom natural gas prices in the US are the lowest in the world, outside of the Middle East. Chevron Phillips Chemical Co., a new joint venture company created between Chevron Corp and ConocoPhillips, believes that the plastic industry could invest $30 billion into constructing factories within the US to convert the natural gas into plastics such as ethylene. Ethane is a component of gas used to make ethylene, the most popular and widely produced petrochemical in the industry. Prices of ethane are very low, having fallen 36 percent this year at Mont Belvieu, Texas, to just 52 cents a gallon; and with more shale formations being developed from Colorado to West Virginia, prices are only expected to decrease further.

Mark Lashier, executive vice president at Chevron Phillips, said that the yield of natural gas liquids such as ethane from the shale formations currently running can support five new processing plants, each which will cost about $5 billion to $6 billion and will be built over a decade. Chevron Phillips is constructing a new $5 billion ethylene plant in Baytown, Texas, to be completed by 2017, as well as two new polythene plants. Other companies with plans to build new plants include; Dow Chemical Co., Sasol Ltd., Formosa Plastics Corp. and Royal Dutch Shell Plc.

The cheap gas is attracting so much attention because it is hugely advantageous, not only as a cheap raw material for producing the plastics, but also as a fuel to power the factories.

With these plans to vastly increase the production capacity of plastics in the US the volume of exports will also increase. Therefore new infrastructure will be needed to handle the increased shipments.

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News