Telephone: 724-787-4451

American Chemistry Council Report: $185 Billion Investment Linked to Shale Gas

  February 2018 / Vol 8 Issue 1

American Chemistry Council Report: $185 Billion Investment Linked to Shale Gas
By: Robert Johnson, President, ADKL LLC


The American Chemistry Council 9 (ACC) recently highlighted chemical investment economic benefits from shale gas in a December 2017 report.

New domestic supplies of affordable natural gas and natural gas liquids (NGLs) have resulted in significant economic benefits to the United States economy. This gas supply creates a competitive advantage for U.S. chemical manufacturers resulting in more investment and domestic jobs. As of December 2017, there were 317 projects valued at $185 billion announced, with 48 percent of the investment completed or under construction. A large percentage of this investment is targeted for chemistry and plastic product exports. Increased exports will improve America’s trade balance. Shale gas development has attracted foreign investors and the United States continues to increase market share in natural gas production.

ACC reviewed the 317 projects for economic impacts. Direct jobs from 2010 thru 2025 are projected at just under 70,000. The investments will lead to $26 billion in permanent new federal, state, and local tax revenue by 2025. According to ACC the Appalachian region has the potential to become a major petrochemicals and plastics manufacturing hub. Shale development including the Shell cracker plant currently under construction will generate new jobs, higher wages, and tax revenue for this region.

We know the new cracker facility in Beaver County (PA) will create a minimum of 6,000 construction jobs. And yes, there are proposals for more cracker facilities in the Appalachian region. ACC has been providing excellent research regarding the economic benefits of ethane cracker development for the chemical industry. For the petrochemical industry, ACC projects the following impacts for the quadstate region of West Virginia, Pennsylvania, Ohio, and Kentucky:

• $36 billion in capital investment
• 101 thousand jobs created and supported
• $28 billion in economic expansion
• $2.9 Billion in annual tax revenues

ACC produced a report in May 2017 titled “The Potential Economic Benefits of an Appalachian Petrochemical Industry. This report highlights lower natural gas costs in the region and shale gas chemistry/manufacturing benefits. It suggests the Appalachian Region is an excellent location for a second major petrochemical manufacturing hub in the United States.

The region’s benefits are:
• Proximity to abundant NGL resources from the Marcellus/Utica and Rogersville shale formations
• Proximity to manufacturing markets
• Will strengthen U.S. economy with employment and energy supply
• Opportunity to enable high-value ethane use to create U.S. made products, while avoiding ethane rejection

To maximize the benefits of shale gas and reach the $185 billion investment our new energy infrastructure must be completed. As you hear about pipelines and facilities planned in your community, please show your support for these projects by contacting your elected officials.

For more information about the reports above please go to:


Robert Johnson
President, ADKL LLC


For additional information on how you can support the petrochemical industry
please contact me at


Visit Us On FacebookVisit Us On Twitter