Plan to Leverage Lower Cost Natural Gas and Natural Gas Liquids — Part 1

“Something’s happening here……..”

And as the Buffalo Springfield song goes… what it is ain’t exactly clear. So what’s happening?

We are on the verge of a significant change in the availability of lower cost energy in the United States. The growth of the natural gas and oil industry in America and Canada has the potential to
lead us into a new industrial resurgence if not a revolution. Along with natural gas there are abundant other natural gas liquids such as ethane and propane that will be produced and processed in the US, specifically in the Northeast.

The significance of these liquids may not be exactly clear to you, and I would suspect the same with most individuals living in North America. In a few years, once the infrastructure is in place to transport and process these liquids, it will allow our country to return to a model of lower cost manufacturing. Any process, product or service that uses polyethylene, plastics, specialty chemicals, fertilizers and the like will be impacted in a positive way.

So let me get to the point of this blog. While it isn’t exactly clear when, what and where this will occur it is abundantly clear that many opportunities will present themselves to you and your business if you are prepared to take advantage of them. Conversely, the availability of low cost energy and petrochemical feedstock can present a threat to your business if your competition plans and executes a strategy to leverage these changes and enter your market. The good news is that you have time to plan as the abundance of gas and associated liquids will not be able to fully get to market until the necessary infrastructure is in place. This will take anywhere from one to five years.

Regardless of your emotional feelings or environmental position relative to hydraulic fracturing or “fracking”, as it is commonly referred to, increased natural gas production in North America is going to happen. As you and your executive team update your SWOT analysis and strategic plans, take these changes into account.

Something is happening here and one thing is exactly clear. Many businesses and organizations will benefit from this energy boom if they plan and execute properly. Follow my blog over the next few weeks if you want to learn more about the soon-to-be-changing manufacturing landscape in the US and Canada. Also I will be sharing some surprising facts about the positive impact the abundance of low cost natural gas is already having on our environment. Feel free to drop me an email with any specific questions you have.

In the meantime everybody look what’s going ’round.

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