Executive Briefings

Bulk Chemical Production Expected to Fuel Industrial Energy Consumption Increases for Next 25 Years

The U.S. Energy Information Administration's annual energy outlook - which was released earlier this spring - anticipated that the industrial sector's energy demand would outpace all other sectors through 2040, and a just-released EIA report projected that bulk chemicals would account for a "large portion of both consumption and anticipated growth," with the value of chemical shipments increasing from $288bn in 2013 to $429bn in 2025.

The estimate expects slower growth to take place in bulk chemicals in the subsequent 15 years; as of 2040, chemical shipment values should increase to $454bn.

The EIA report expects chemical companies to take advantage of increasing domestic production of natural gas and crude oil. Chemical manufacturers use natural gas, hydrocarbon gas liquids and petrochemicals as feedstock to produce bulk chemicals, which are needed to create final products such as plastics and fertilizers.

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The estimate expects slower growth to take place in bulk chemicals in the subsequent 15 years; as of 2040, chemical shipment values should increase to $454bn.

The EIA report expects chemical companies to take advantage of increasing domestic production of natural gas and crude oil. Chemical manufacturers use natural gas, hydrocarbon gas liquids and petrochemicals as feedstock to produce bulk chemicals, which are needed to create final products such as plastics and fertilizers.

Read Full Article