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ACC: US chemical investment linked to shale gas reaches $100 billion
12:32 PM MST | February 21, 2014 | Lindsay Frost
The American Chemistry Council (ACC) announced today that announced US chemical industry investment linked to shale gas now tops $100 billion. As of this month, 148 projects valued at $100.2 billion have been announced, ACC says. These projects, including new factories, expansions and process changes to increase capacity, could potentially lead to $81 billion/year in new chemical industry output and 637,000 permanent new jobs by 2023, ACC says. Over half of the investment is by firms headquartered outside of the United States.
“This is a historic milestone for America’s chemical industry and proof that shale gas is a powerful driver of manufacturing growth,” says ACC president and CEO Cal Dooley. “Thanks to the shale gas production boom, the United States is the most attractive place in the world to invest in chemical and plastics manufacturing. It’s an astonishing gain in competitiveness.”
Between 2010 and 2023, $100.2 billion in increased capital spending can create an estimated 55,000 permanent new chemical industry jobs, 314,000 jobs in supplier industries and 267,000 payroll-induced jobs in communities where workers spend their wages, ACC’s analysis showed. An additional 222,000 temporary jobs will be created during the capital investment phase, which peaks in 2016.
“Given the enormous benefits of shale-related manufacturing, we are encouraged by President Obama’s pledge to help make sure these projects happen,” Dooley says. “We’re glad the White House agrees that regulatory permitting issues must not be a roadblock to new US investment, and we are excited to get these projects approved and built.”
The report analyzed nearly 100 chemical and plastics projects totaling $71.7 billion in potential investment that had been announced through March 2013 using the IMPLAN input-output methodology, an economic model that quantifies interdependencies among industries or economic sectors.