- According to the American Chemistry Council, a 25% increase in ethane supply, a commonly used natural gas liquid, will lead to 412,000 new jobs in the chemical industry, more than $132 billion in U.S. economic output and $4.4 billion in new tax revenues.
- According to the Industrial Energy Consumers of America, an American manufacturing renaissance is under way because of low natural gas prices. Companies are investing $110 billion in 123 projects that will create 5 million new jobs.
- Low electricity prices are also driving manufacturing back to the U.S. from Germany and other countries that lack access to abundant natural gas.
Natural Gas Is Bringing Manufacturing Back to the U.S.
The low price of natural gas is reviving American manufacturing and creating hundreds of thousands of jobs as companies build or expand plants. Natural gas is a major input to fertilizer manufacturing, and natural gas liquids are an important feedstock for chemical manufacturing. The American Chemistry Council reports that manufacturers are planning 148 new chemical manufacturing projects to take advantage of abundant, affordable natural gas and liquids supplies. ACC anticipates over $100 billion in new capital investment will create 637,000 permanent new jobs in the chemical industry and add $81 billion in annual economic output by 2023.
European companies are moving their manufacturing to the United States to take advantage of our abundant natural gas supply. BASF is converting a crude-based naphtha cracker in Port Arthur, TX, to run on natural gas-based ethane. Linde, a German industrial gas company, plans to invest $200 million in Texas to create the world’s largest natural gas-based syngas chemical plant.