STEPPING ON THE GAS: North American petrochemical makers are benefiting from domestic NATURAL GAS DEVELOPMENT

AS RECENTLY as a few years ago, North American petrochemical companies worried that high natural gas prices would put them at a disadvantage internationally. The result, they feared, would be gleaming new chemical complexes overseas and boarded-up plants back home. Today, with rock-bottom natural gas prices that are low relative to crude oil, petrochemical makers are more hopeful. The prices might not lead to a resurgence of the U.S. as a petrochemical exporter, but they might help U.S. plants stay open. To some extent, the prices are a consequence of the deep recession. But companies also have the natural gas industry to thank for devising ways to tap into new resources. About 70% of the ethylene capacity in North America is based on natural gas liquids—ethane, propane, and other hydrocarbons that are separated from natural gas’s main component, methane. For decades, until about 2000, natural gas in North America was cheaper, on an energy content ...