Brian Ames of Dow,left, is interviewed by Rob Westervelt of IHS Chemical Week. ALL HAIL SHALE! Dow Leads Manufacturing Resurgence, Sees Job Boom
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Shale gas has the potential to be a job creation machine, says Brian J. M. Ames, Dow executive.
After hearing his rationale, it appears shale may be the "silver bullet" the nation has been seeking for boosting employment.
That is, if we don't export too much liquefied natural gas (LNG) and cause the price to rise too high.
"Shale gas, as a source of fuel and as a raw material, is offering the U.S. the opportunity to reclaim its position as a manufacturing hub and to stimulate significant job growth," states Mr. Ames, president olefins, aromatics and alternatives for Dow.
Estimates are that 24 billion barrels of shale gas are available in the resource base, described as "very, very large and game changing" by experts.
Cheap American natural gas has prompted companies to announce massive expansions within the United States, totaling more than $95 billion, by Dow's estimates, with many plants planned in Texas, the Houston Chronicle reported.
Ames said Dow investments in the Gulf Coast will employ up to 4,800 workers at peak construction and generate more than 35,000 jobs in the broader economy, commenting:
"And our investment is just the tip of the iceberg, as $100 billion of investment is planned by global industries in 123 new U.S. projects. Over the next decade, the potential exists for as many as five million new manufacturing jobs."
Dow scouts the world for the cheapest basic materials and has concluded they are available in the U.S., Ames told Jeff McMahon of Forbes.
Petrochemical companies use ethane and propane, which are produced with natural gas, to make chemical building blocks that are used to make 90 percent of the products Dow sells. Prices for those feed stocks lately have benefited manufacturers, who are receiving deep discounts because of surpluses in the U.S.
Average ethane prices fell 48 percent last year compared with 2011, and average propane prices were down 32 percent, according to the U.S. Energy Information Administration.
Consumers may also benefit from lower utility bills caused by an abundance of affordable energy. However, the outcome of the shale gas revolution is far from certain, a discussion point at the Chicago Council on Global Affairs.
Environmental concerns, alternative energy sources, the health of the global economy, and a heated debate about the export of American natural gas abroad may all influence the outcome.
Horizontal drilling and hydraulic fracturing are methods used to boost the production of shale gas, and environmental questions have arisen about them.
To take full advantage of the economic benefits offered by shale gas, it is Dow's position that the United States should manage its supply and demand through a thoughtful, balanced approach. As part of a recent panel discussion hosted by The Chicago Council on Global Affairs, Mr. Ames explained how adopting such a strategy would maximize the value of the shale gas revolution for the U.S. -- in particular, the shale gas's potential to become a job creation machine.
High, volatile gas prices severely damaged the U.S. manufacturing base. Six million manufacturing jobs were lost and 42,000 factories closed from 2001 to 2009. The U.S. chemical industry was hit hard, going from a net exporter to a net importer from 1996 to 2005, with a $26 billion swing in the chemical trade.
So, how does the job creation machine work? Ames shared this three-step process for Dow at the Chicago Council forum:
1.We engage in the up-front, heavy manufacturing of ethylene
2.We generate the intermediate, polyethylene
3.Our customers, located all over the U.S., purchase polyethylene to incorporate into consumer products
Jobs are created throughout the process by Dow and by our customers in their own sectors.
"This process will yield tremendous economic benefit across the U.S., but we must remember that sound, measured management of our shale gas is what will allow each step to take place domestically. A smart energy policy that balances current needs with long-term U.S. interests is what will make shale gas a true job creation machine."
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"The BUZZ" - Read Feedback From Readers! |
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donnajkc Says:
On January 24, 2014
at 11:27 AM
Who can oppose new jobs? Or bringing manufacturing back to the U.S.? Not me, BUT, using fracking to get at shale gas in MICHIGAN is just not a good idea. Many states in the U.S. and some provinces in Canada have had their experiences with fracking -- and they were so bad that fracking was banned! We're finally getting the pollution cleaned up around here from the muck that was dumped in our water and in deep wells from the last 50+ years.
And -- Nobody from Dow or any gas company asked me if I was willing to risk a higher rate of cancer for me and my children and my grandkids from shale gas manufacturing in exchange for ..... in exchange for what? A cut of the profits? Hah! In my brain, if you have to get gas from shale, it makes more sense to get gas from shale without risking the fresh water in the Great Lakes that is left.. And best of all... That way, I can live safely here, my family can live safely here, and if shale gas makes the cost of stuff go down, I'll benefit from that, too! |
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donnajkc Says:
On January 24, 2014
at 12:49 PM
Dave,
You pride yourself on your research skills. Well, do some research before you endorse fracking. At the very least, as a newspaperman, aren't you obligated to present a balanced, factual story? Donna Cunningham |
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Dave Rogers |
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