Shale gas and chemicals

Abundant supplies of natural gas in shale deposits have boosted the US economy in ways you might not imagine:

Chemicals play nearly as important a role in the macro economy as energy.  Petro-chemicals and natural gas are the feedstock for plastic and fertiliser.  Eighty per cent of the cost of nitrogen based fertiliser is natural gas. Similarly, natural gas liquids like ethane are a major cost component of ethylene for plastic, which impacts everything made from, or wrapped in, plastic.

The US shale revolution provides low cost natural gas and ethane and impact other markets like hydrochloric acid. So low cost US shale means much more than cheap energy.

Source:http://nohotair.typepad.co.uk/no_hot_air/2011/02/us-chemicals-now-the-low-cost-leader-thanks-to-shale.html

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