Chemical Industry Overview
With a very speedy increase in unconventional hydrocarbons production (e.g., shale oil and gas), North America has an excess of natural gas in its possession, this in turn gives the region a significant advantage in the cost for ethylene production also known as steam cracking).
There is at the least four new crackers that are in the advanced stages of planning for the region. Another 11 or so are currently under evaluation, and nine are being studied or in the process of being expanded.
When and if all the new capacity is made available, this would bring big increase to the North American capacity 64% by 2023 to be precise.
Where is it headed?
The main concern for these companies building these plants is that there is a potential of global oversupply of ethylene. According to a group analysis, the final demand for ethylene products is expected to grow by about 2% every year in North America – if not more, depending on whether the trend toward North American re-industrialization continues on its current path.
Do you have the right structure in place?
What chemical companies and suppliers must first determine is how to out-structure and out-execute their competition to achieve sustainable growth in a recurring industry.
KPI has the expertise to help you drive results by developing and implementing innovative strategies, improving operations while reducing the risk.