Industrial Info to Present Chemical Industry Outlook at Rice Global Engineering & Construction Forum
Trey Hamblet, Industrial Info's Vice President of Research for the Chemical Processing Industry, will present an outlook on the industry's spending trends at the Rice Global E&C Forum on Friday, June 8.
The forum event will be held 11:15 a.m.-1:45 p.m. at Grand Hall in the Ley Student Center at Rice University.
The U.S. Chemical Processing Industry has been growing consistently since the last recession ended, with overall spending exceeding historical milestones for each of the past five years. Most of this growth is related to an abundant and long-term supply of inexpensive natural gas and natural gas liquids (NGLs). These commodities have quickly become the primary feedstock for much of the petrochemical industry in the U.S. and Canada, displacing naphtha as the feedstock of choice.
Some of the first influences of cheap natural gas on the chemical industry were witnessed in 2013, when construction began on several million tons of new ammonia capacity in response to future natural gas prices that were almost flat. Soon after in 2014, cheap NGLs promoted the start of construction for multiple ethane crackers in Texas to produce world-scale quantities of ethylene.
The cost advantages of low gas prices available to producers in the U.S. continue to keep overall investments in the chemical industry at an all-time high, sparking dozens of multibillion-dollar investments and attracting numerous foreign companies to invest in the United States for the first time. Even after more than five years of elevated spending in the chemical industry, new and even bigger projects continue to be announced and confirmed.
“In this market outlook we will share details of what we are tracking, the outlook for spending through 2019 and more,” Hamblet said.