- U.S. energy producers could begin exporting liquefied natural gas within the next five years.
- Several companies are already investing billions of dollars to convert import terminals along the Gulf Coast into LNG export facilities.
- LNG exports could increase even further as technology advances.
Global Challenges
U.S. chemical producers have benefited more than any other manufacturing industry from the shale gas boom. The industry has gained ground on European competitors because the primary feedstock in U.S. chemical production is natural gas-derived ethylene. In Europe, the primary chemical feedstock is oil-based naphtha.
That could change as policymakers in European countries realize their vast shale-gas resources could make them more competitive, Scott said. Some countries, including France, have outlawed fracking.
China could be another major player in developing shale gas resources in the coming years, said David Lincoln, managing partner of Element Partners, a private equity investor in energy.
"China may have the most shale reserves," Lincoln said.
But so far, there has not been any significant production in China, Lincoln said.
Competition from overseas natural gas supplies will eventually impact U.S. manufacturers that have benefited from the shale boom, Scott said. But it's unlikely to happen in the near future, as evidenced by the major plant expansions announced in recent years by chemical companies.
