Shale Gas – Changing the face of the global petrochemical industry

Shale gas has emerged as a game changer in the energy space, particularly in the US, where it has opened up a vast new source of natural gas and brought down local natural gas price substantially. As Middle Eastern countries use more gas for domestic energy and fuel for water desalination, gas allocations to the petrochemical industry are limited, while European and Asian shale developments would take several years – thus providing the US chemical industry a substantial advantage in terms  of both energy and feedstock prices. This article focuses on how the shale gas is transforming the dynamics of the global petrochemical industry, the eventual rise of the US as a major petrochemical player and the diminishing dominance of the Middle Eastern countries in the sector.