U.S. natural gas industry could spur $130 billion in plastics manufacturing
Sunday, May 17, 2015
The United States plastics industry could gain $130 billion in capital investments due to the shale gas industry, according to Pittsburgh Business Times.
The American Chemistry Council released a report that showed how inexpensive natural gas supplies will drive producers to the U.S. The council estimates that 127,500 jobs will be created by the plastics industry due to the investments.
In North America, natural gas is used as feedstock for plastic products. In other parts of the world, oil is the feedstock for plastics. Energy resources make up as much as 70 percent of the total costs for plastic resins, so the price of natural gas is crucial for competitiveness with other countries.
Via: Pittsburgh Business Times > Report: Shale gas helping to drive $130 billion in investments in plastics manufacturing
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.