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May 2013
SHALE GAS, COMPETITIVENESS,
AND NEW U.S. CHEMICAL
INVESTMENT: AN ANALYSIS
BASED ON ANNOUNCED
PROJECTS
The  full  ACC  report  is  available  http://chemistrytoenergy.com/shale-­‐study.  
  
Shale Boom Driving NewU.S. Investment
NorthAmericanCompetitiveAdvantageSustainedthrough2020
Data provided with
permission from
IHS Global Insight
Affordable, competitively
priced natural gas is driving
significant new capital
investment in the US
manufacturing sector
Long-‐term, sustained
opportunity in feedstock
supply and cost
51% of new, publicly-‐
announced chemical
industry investment is from
firms based outside the US
U.S. Shale Gas Chemical Investment
Manufacturing
renaissance due to
increased access to
natural gas from shale
Downstream partners are
more competitive than
ever
Nearly 100 projects
announced as of March 2013
$72 billion in potential
chemical industry capital
investments
$67 billion in additional
output by 2020
US Chemical Industry Growth
Outpaces Western Europe
60
70
80
90
100
110
120
130
1990 1995 2000 2005 2010 2015 2020
By  2020,  US  chemical  
output  is  21%-­‐23%  higher  
than  Western  Europe.  
Western  
Europe  
Chemicals  excl.  Pharmaceuticals  -­‐  Volume  Index  of  Production  (2007=100)    
Sources:  Eurostat,  FRB,  ACC  analysis  
U.S.  
New ACC Study: US Chemical Industry
Output from Shale-‐Related Investments
$0
$10
$20
$30
$40
$50
$60
$70
$80
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Billions  of  2012  Dollars  
By  2020,  additional  output  from  shale-­‐
related  chemical  investments  
generates  $66.8  billion  in  additional  
chemical  industry  shipments.    
  
This  is  an  ongoing,  permanent  upward  
shift  in  the  level  of  shipments.  
 	
  
During  Investment  Phase  2010-­‐2020*  
(Temporary)	
  
From  Higher  Chemical  Industry  Output    
in  2020  (Permanent)  
  	
  
Total  
Jobs	
  
Average  
Jobs  Added  
Per  Year	
  
Payroll    
($  Billion)	
  
Output	
  
($  Billion)	
   Total  Jobs	
  
Payroll    
($  Billion)	
  
Output	
  
($  Billion)	
  
Direct	
  
          
485,054  	
   44,096   $30.7  	
   $71.7  	
   46,359             $4.9  	
   $66.8  	
  
Indirect	
  
      258,039  	
   23,458   $16.4  	
   $55.9  	
         264,111  	
   $18.9  	
   $100.4  	
  
Induced	
  
      442,233  	
   40,233   $20.8  	
   $66.2  	
         226,272  	
   $10.6  	
   $33.9  	
  
  Total	
  
      
1,185,326  	
   107,757   $67.9  	
   $193.9  	
   536,741        	
   $34.4  	
   $201.1  	
  
NewACC Study: Economic Contributions from
Announced Chemical Industry Investments in U.S.
*Because the investment occurs over a multi-year period, investment phase jobs should be interpreted as work-year
jobs. This is done to avoid double-counting the same job in multiple years.
$14B
in NEW, PERMANENT
federal, state, and local
tax revenue from
increased chemical
industry output
(by 2020)
$20B
in NEW federal, state, and
local tax revenue during
investment phase
(2010-‐2020)
New ACC Study: Tax
Revenue Benefits
Access & Infrastructure: Allow access to natural gas reserves on
government and private lands. Ensure reliable infrastructure to
transport supplies
Permitting: Timely approval of new construction permits for
projects and investments
State Regulations: Implement responsible state-‐based regulations
that avoid undue restrictions on natural gas supplies
Tax Treatment: Minimize cost and reduce complexity for
businesses. Maintain accelerated depreciation in tax policy
Policies Needed to Realize Potential

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Shale Gas, Competitiveness, & New U.S. Chemical Investment: ACC Study

  • 1. May 2013 SHALE GAS, COMPETITIVENESS, AND NEW U.S. CHEMICAL INVESTMENT: AN ANALYSIS BASED ON ANNOUNCED PROJECTS The  full  ACC  report  is  available  http://chemistrytoenergy.com/shale-­‐study.    
  • 2. Shale Boom Driving NewU.S. Investment NorthAmericanCompetitiveAdvantageSustainedthrough2020 Data provided with permission from IHS Global Insight Affordable, competitively priced natural gas is driving significant new capital investment in the US manufacturing sector Long-‐term, sustained opportunity in feedstock supply and cost 51% of new, publicly-‐ announced chemical industry investment is from firms based outside the US
  • 3. U.S. Shale Gas Chemical Investment Manufacturing renaissance due to increased access to natural gas from shale Downstream partners are more competitive than ever Nearly 100 projects announced as of March 2013 $72 billion in potential chemical industry capital investments $67 billion in additional output by 2020
  • 4.
  • 5. US Chemical Industry Growth Outpaces Western Europe 60 70 80 90 100 110 120 130 1990 1995 2000 2005 2010 2015 2020 By  2020,  US  chemical   output  is  21%-­‐23%  higher   than  Western  Europe.   Western   Europe   Chemicals  excl.  Pharmaceuticals  -­‐  Volume  Index  of  Production  (2007=100)     Sources:  Eurostat,  FRB,  ACC  analysis   U.S.  
  • 6. New ACC Study: US Chemical Industry Output from Shale-‐Related Investments $0 $10 $20 $30 $40 $50 $60 $70 $80 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Billions  of  2012  Dollars   By  2020,  additional  output  from  shale-­‐ related  chemical  investments   generates  $66.8  billion  in  additional   chemical  industry  shipments.       This  is  an  ongoing,  permanent  upward   shift  in  the  level  of  shipments.  
  • 7.     During  Investment  Phase  2010-­‐2020*   (Temporary)   From  Higher  Chemical  Industry  Output     in  2020  (Permanent)       Total   Jobs   Average   Jobs  Added   Per  Year   Payroll     ($  Billion)   Output   ($  Billion)   Total  Jobs   Payroll     ($  Billion)   Output   ($  Billion)   Direct             485,054     44,096   $30.7     $71.7     46,359             $4.9     $66.8     Indirect        258,039     23,458   $16.4     $55.9          264,111     $18.9     $100.4     Induced        442,233     40,233   $20.8     $66.2          226,272     $10.6     $33.9      Total         1,185,326     107,757   $67.9     $193.9     536,741           $34.4     $201.1     NewACC Study: Economic Contributions from Announced Chemical Industry Investments in U.S. *Because the investment occurs over a multi-year period, investment phase jobs should be interpreted as work-year jobs. This is done to avoid double-counting the same job in multiple years.
  • 8. $14B in NEW, PERMANENT federal, state, and local tax revenue from increased chemical industry output (by 2020) $20B in NEW federal, state, and local tax revenue during investment phase (2010-‐2020) New ACC Study: Tax Revenue Benefits
  • 9. Access & Infrastructure: Allow access to natural gas reserves on government and private lands. Ensure reliable infrastructure to transport supplies Permitting: Timely approval of new construction permits for projects and investments State Regulations: Implement responsible state-‐based regulations that avoid undue restrictions on natural gas supplies Tax Treatment: Minimize cost and reduce complexity for businesses. Maintain accelerated depreciation in tax policy Policies Needed to Realize Potential