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Market Research Report - 256542

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
Published: December 5, 2012 Content info: 62 Pages
Description

Summary

GlobalData, the industry analysis specialist, has released its latest research, "Petrochemical Industry in the US - Abundant Feedstock Supply from the Shale Reserves to Revive the US Petrochemical Industry". The study comes from the company's petrochemical research group and provides in-depth analysis of the US petrochemicals industry, highlighting major features and explaining how the shale gas revolution is driving its revival. The report gives the historic and forecast 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 encouraging the growth of drilling activities in these shale plays. It has been built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GlobalData's research team of industry experts.

The US petrochemicals industry is set to make a spectacular comeback after suffering from low demand and high feedstock costs for most of the previous decade. Emergence of the Middle East as a hub of basic petrochemicals production further eroded its competitiveness. In the middle of the last decade, the discovery of shale gas changed the dynamics of the US petrochemicals industry by leading to the revival of the natural gas industry which improved the ethane supply and created high profit margins at the end of 2011 and 2012. The shale plays are steadily taking center stage in the natural gas industry and so the petrochemicals industry is also hoping for an abundant supply 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 2005 to 809 MMbbl in 2011. Ethane production has also received a boost from high NGL production and has increased from 236 MMbbl in 2005 to 338 MMbbl in 2011. It is expected to increase further as drilling in the liquid-rich shale areas continues into the future.

Scope

The report provides in-depth analysis of the opportunities and challenges facing manufacturers of petrochemicals 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 natural gas 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 US

Reasons to buy

The 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 into future investments in the US
  • Increase future revenue and profitability with the help of insights into future opportunities and critical success factors in the US petrochemicals industry
  • Understand the current and likely future competitive scenario
Table of Contents

Table of Contents

1. Table of Contents

  • 1.1. List of Tables
  • 1.2. List of Figures

2. Introduction

  • 2.1. Overview
  • 2.2. GlobalData Report Guidance

3. Shale Gas - A Vital Source of Energy Made Available Through Continuous Technological Evolution

  • 3.1. What is Shale Gas?
    • 3.1.1. Shale Gas is extracted through Horizontal Drilling and Hydraulic Fracturing
    • 3.1.2. Natural Gas Liquids Fractionated from the Shale Gas are Used in Petrochemical Production
    • 3.1.3. The US has the Second Largest Shale Gas Reserves in the World
  • 3.2. Increasing Shale Gas Production has Increased Natural Gas Liquid Supply
    • 3.2.1. Barnett Shale Play is the Oldest and the Largest Natural Gas Liquid-producing Shale in the US
    • 3.2.2. Eagle Ford is One of the Most Liquid-rich Shale Plays and has the Necessary Associated Infrastructure
    • 3.2.3. Marcellus Shale Play will Supply Huge Quantities of Ethane after the Completion of Planned Pipelines and Planned Projects
    • 3.2.4. Bakken Shale is Primarily an Oil Play with a High Natural Gas Liquid Content

4. The US Natural Gas Industry Witnessed a Turnaround after Shale Gas Significantly Enhanced Production

  • 4.1. Historic US Natural Gas Production and Consumption, 1970-2000
  • 4.2. Natural Gas Imports Continued to Increase until Advanced Drilling Technologies Made Production from Shale Plays Viable
    • 4.2.1. Natural Gas Supply Shortage until 2005
    • 4.2.2. Breakthrough in Drilling Technology Improved Natural Gas Production
    • 4.2.3. Shale Plays have created a Plentiful Supply of Natural Gas Production for the Rest of the Decade
  • 4.3. Natural Gas Prices Fell as a Result of Excess Production
  • 4.4. Lower Natural Gas Prices have Forced Producers to Seek Liquid-rich Shale Plays

5. Turnaround in the Natural Gas Industry to Enhance Ethane Supply for the US Petrochemicals Industry

  • 5.1. The US Petrochemicals Industry Became Less Competitive with the Emergence of the Middle East as the Most Economic Production Center
  • 5.2. The US has been Overtaken by China as the Leader of the Global Petrochemicals Industry
    • 5.2.1. China has emerged as the Leader of the Global Petrochemicals Industry in the Last Decade
    • 5.2.2. Slower US Petrochemicals Demand Growth due to Mature Domestic Market
    • 5.2.3. Chinese Production Increased at an Unprecedented Pace to Fulfill Domestic Demand
  • 5.3. US Poised to Regain Strength as Shale Reserves will Provide Abundant Supply of Ethane Feedstock
  • 5.4. Lower Cost of Ethane has Driven Ethylene Margins in the US
  • 5.5. More Ethane Crackers are Being Planned in the US to Benefit from the Advantageous Feedstock Scenario
  • 5.6. Increase in Natural Gas Liquid Production has Boosted Fractionation Capacity
  • 5.7. Increasing Investment will Increase Ethylene Capacity Substantially by 2017

6. Government Regulation and Inadequate Pipeline Infrastructure May Hamper the Ethane Supply in the US

  • 6.1. Tightening Fracking Regulations to Make Drilling More Difficult
  • 6.2. Pipeline Infrastructure Must be Improved to Bring Ethane to Petrochemical Markets

7. Major Companies Utilizing Shale Resources for Expanding Petrochemicals Business

  • 7.1. The Dow Chemical Company
    • 7.1.1. Business Overview
    • 7.1.2. Dow's Ethylene Capacity by Country
    • 7.1.3. Dow's Active Olefins Capacity in the US
    • 7.1.4. Dow's Shale Gas-based Investments in the US
  • 7.2. Chevron Phillips Chemical Company LLC
    • 7.2.1. Business Overview
    • 7.2.2. CPC's Ethylene Capacity by Country
    • 7.2.3. CPC's Active Olefins Capacity in the US
    • 7.2.4. CPC's Shale Gas-based Investments in the US
  • 7.3. ExxonMobil Corporation
    • 7.3.1. Business Overview
    • 7.3.2. ExxonMobil's Ethylene Capacity by Country
    • 7.3.3. ExxonMobil's Active Olefin Capacity in the US
    • 7.3.4. ExxonMobil's Shale Gas-based Investments in the US
  • 7.4. The Royal Dutch Shell
    • 7.4.1. Business Overview
    • 7.4.2. Shell's Ethylene Capacity by Country
    • 7.4.3. Shell's Active Olefins Capacity in the US
    • 7.4.4. Shell's Shale Gas-based Investments in the US
  • 7.5. Sasol Limited
    • 7.5.1. Business Overview
    • 7.5.2. Sasol's Ethylene Capacity by Country
    • 7.5.3. Sasol's Active Olefin Capacity in the US
    • 7.5.4. Sasol's Shale Gas-based Investments in the US

8. Latest Trends in the US Petrochemicals Industry Triggered by Shale Gas Developments

  • 8.1. Improved Ethane Supplies will Drive the Use of On-Purpose Technologies in the Future
  • 8.2. Ethane from Marcellus Shale will Fulfill Demand from Overseas Markets
  • 8.3. Utica Shale May Emerge as Another Source of Ethane

9. The US Petrochemicals Industry has a Bright Future as the Advantaged Feedstock Supply will Remain in the Long Term

10. Appendix

  • 10.1. Abbreviations
  • 10.2. Definitions
    • 10.2.1. Installed Capacity
    • 10.2.2. Process
    • 10.2.3. Technology
  • 10.3. Bibliography
  • 10.4. GlobalData's Research Methodology
    • 10.4.1. Coverage
    • 10.4.2. Secondary Research
    • 10.4.3. Primary Research
    • 10.4.4. Expert Panel Validation
  • 10.5. Contact Us
  • 10.6. Disclaimer

List of Tables

  • Table 1: Natural Gas Industry, Global, Technically Recoverable Shale Gas Resources (tcf), 2011
  • Table 2: Natural Gas Industry, US, Geological and Economic Characteristics of Barnett Shale Play
  • Table 3: Natural Gas Industry, US, Geological and Economic Characteristics of Eagle Ford Shale Play
  • Table 4: Natural Gas Industry, US, Geological and Economic Characteristics of Marcellus Shale Play
  • Table 5: Natural Gas Industry, US, Geological and Economic Characteristics of Bakken Shale Play
  • Table 6: Natural Gas Industry, US, Production and Consumption (tcf), 1970-2000
  • Table 7: Natural Gas Industry, US, Share of Shale Gas in Total Natural Gas Production (%), 2000-2035
  • Table 8: Natural Gas Industry, US, Production and Consumption (tcf), 2001-2011
  • Table 9: Natural Gas Industry, US, Average Quarterly Natural Gas Price ($/Mmbtu), 2000-2012
  • Table 10: Petrochemical Industry, US and China, Basic Petrochemicals Demand (Mmtpa), 2000-2016
  • Table 11: Petrochemical Industry, US and China, Basic Petrochemicals Production (Mmtpa), 2000-2016
  • Table 12: Petrochemical Industry, US, Ethane Production (MMbbl), 2000-2012
  • Table 13: Royal Dutch Shell and ConocoPhillips, US, Ethylene Margins ($/Ton), January 2010-April 2012
  • Table 14: Ethylene Industry, Global, Cost of Production ($/Ton), 2005 and 2011
  • Table 15: Petrochemicals Industry, US, Shale Gas-based Ethylene Capacity Expansion Details, 2012-2017
  • Table 16: Natural Gas Industry, US, NGL Production (MMbbl), 2000-2011
  • Table 17: Ethylene Industry, US, Inactive Plants, 2009
  • Table 18: Ethylene Industry, US, Capacity (Mmtpa), 2000-2017
  • Table 19: Natural Gas Industry, US, Number of Pending Bills Related to Hydraulic Fracturing, by State, As of May 30, 2012
  • Table 20: The Dow Chemical Company, Key Facts
  • Table 21: The Dow Chemical Company, Ethylene Capacity by Country (%), 2011
  • Table 22: The Dow Chemical Company, US, Active Olefins Plants, 2011
  • Table 23: The Dow Chemical Company, US, Shale Gas-based Planned Projects, 2012-2018
  • Table 24: Chevron Phillips Chemical Company LLC, Key Facts
  • Table 25: Chevron Phillips Chemical Company LLC, Ethylene Capacity by Country (%), 2011
  • Table 26: Chevron Phillips Chemical Company LLC, US, Active Olefins Plants, 2011
  • Table 27: Chevron Phillips Chemical Company LLC, US, Shale Gas-based Planned Projects, 2013-2018
  • Table 28: ExxonMobil Chemical Company, Key Facts
  • Table 29: ExxonMobil Chemical Company, Ethylene Capacity by Country (%), 2011
  • Table 30: ExxonMobil Chemical Company, US, Active Olefins Plants, 2011
  • Table 31: ExxonMobil Chemical Company, Shale Gas-based Planned Projects Details in the US, 2013-2016
  • Table 32: Royal Dutch Shell plc, Key Facts
  • Table 33: Shell Chemical LP, Ethylene Capacity by Country (%), 2011
  • Table 34: Shell Chemical LP, US, Active Olefins Plants, 2011
  • Table 35: Sasol Limited, Key Facts
  • Table 36: Sasol Limited, Ethylene Capacity by Country (%), 2011
  • Table 37: Sasol Limited, US, Active Olefins Plants, 2011
  • Table 38: Cracker Yield by Feedstock (%)
  • Table 39: Propylene Industry, US, Planned Plant Details, 2012

List of Figures

  • Figure 1: Natural Gas Industry, US, Shale Gas Production Process
  • Figure 2: Natural Gas Industry, Global, Technically Recoverable Shale Gas Resources (tcf), 2011
  • Figure 3: Natural Gas Industry, US, Barnett Shale Area
  • Figure 4: Natural Gas Industry, US, Eagle Ford Shale Area
  • Figure 5: Natural Gas Industry, US, Marcellus Shale Area
  • Figure 6: Natural Gas Industry, US, Bakken Shale Area
  • Figure 7: Natural Gas Industry, US, Production and Consumption (tcf), 1970-2000
  • Figure 8: Natural Gas Industry, US, Share of Shale Gas in Total Natural Gas Production (%), 2000-2035
  • Figure 9: Natural Gas Industry, US, Production and Consumption (tcf), 2001-2011
  • Figure 10: Natural Gas Industry, US, Average Quarterly Natural Gas Price ($/Mmbtu), 2000-2012
  • Figure 11: Petrochemical Industry, US and China, Basic Petrochemicals Demand (Mmtpa), 2000-2016
  • Figure 12: Petrochemical Industry, US and China, Basic Petrochemicals Production (Mmtpa), 2000-2016
  • Figure 13: Petrochemical Industry, US, Ethane Production (MMbbl), 2000-2012
  • Figure 14: Royal Dutch Shell and ConocoPhillips, US, Ethylene Margins ($/Ton), January 2010-April 2012
  • Figure 15: Ethylene Industry, Global, Cost of Production ($/Ton), 2005 and 2011
  • Figure 16: Natural Gas Industry, US, NGL Production (MMbbl), 2000-2011
  • Figure 17: Ethylene Industry, US, Capacity (Mmtpa), 2000-2017
  • Figure 18: Natural Gas Industry, US, States with Hydraulic Fracturing Disclosure Requirements, As of May 30, 2012
  • Figure 19: The Dow Chemical Company, Ethylene Capacity by Country (%), 2011
  • Figure 20: Chevron Phillips Chemical Company LLC, Ethylene Capacity by Country (%), 2011
  • Figure 21: ExxonMobil Chemical Company, Ethylene Capacity by Country (%), 2011
  • Figure 22: Shell Chemical LP, Ethylene Capacity by Country (%), 2011
  • Figure 23: Sasol Limited, Ethylene Capacity by Country (%), 2011
  • Figure 24: Utica Shale Area, 2012
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