Lower Oil Prices; Recovery of End Use Markets Puts Wind Back in the Sails of American Chemistry
http://www.americanchemistry.com/Media/PressReleasesTranscripts/ACC-news-releases/Lower-Oil-Prices-Recovery-of-End-Use-Markets-Puts-Wind-Back-in-the-Sails-of-American-Chemistry.html
Despite facing global headwinds, American chemistry expanded at a healthy 2.0 percent growth rate in 2014, and is expected to reach a 3.7 percent gain in output in 2015, before hitting 3.9 percent in 2016, according to the Year End 2014 Chemical Industry Situation and Outlook, published today by the American Chemistry Council (ACC). The report’s consensus is that U.S. chemical output will continue to expand well into the second half of the decade, exceeding that of the overall U.S. economy.
“The appreciation of the dollar, coupled with increased domestic supply of unconventional oil and gas is helping to drive oil prices down,” said Dr. Kevin Swift, chief economist at the American Chemistry Council. “In turn, manufacturing costs are reduced, production is stimulated, inflation restrained, and consumer confidence, along with purchasing power and spending, is boosted,” he added.
That boost in spending power has contributed to gains in key end-use markets including light vehicle sales ($3,500 of chemistry per unit) and housing ($15,000 of chemistry per start). Light vehicle sales saw an increase of nearly 5.2 percent over 2013, and production continues to improve, with sales expected to rise further in 2015 as pent-up demand, improving employment prospects, and increased availability of credit foster growth. Though the housing outlook remains cautious, inventories and interest rates remain low. Job growth, a major long-term driver for housing is improving, as seen in the 7.5 percent increase in housing starts between 2013 and 2014. Though activity will remain well below the previous peak of 2.07 million units in 2005, by the second half of the decade, activity will approach the long-term underlying demand of 1.5 million units per year.
meanwhile in Jubail, Dow Chemical and Saudi Aramco have teamed up to build the Sadara project that is one of the largest projects of it’s kind in the world.
The project is bringing many jobs to America for the special equipment and materials required
http://www.chemicals-technology.com/projects/sadara-complex/