A new report from the American Chemistry Council suggests that untapped natural gas resources from shale could rejuvenate the economy of the US state of Michigan.
The report concludes that more than 19,000 permanent, high-paying chemical manufacturing jobs could be created in Michigan, revitalizing the state's industrial base, driving economic growth and boosting exports while generating tens of millions of dollars in much-needed state revenue.
"Natural gas is a game changer for chemical manufacturers — and Michigan,” said ACC President and CEO Cal Dooley. “Reliable and inexpensive sources of domestic natural gas will safeguard Michigan's energy future and jump start its economy.
"Access to untapped sources of domestically-produced natural gas is one of the most important domestic energy developments in 50 years and provides unparalleled opportunities for the chemical industry and other manufacturers in Michigan.
“One-third of US natural gas reserves are comprised of shale gas reserves that were almost impossible to extract just five years ago," Dooley added.
The surge in natural gas production from shale gas could drive down costs as lower natural gas prices translate into lower electricity bills for manufacturers and other businesses.
Michigan's chemical industry relies on natural gas not just for heat and electricity, but also as the primary raw material to create ethane—a critical ingredient in the production of thousands of products from paint and pipes to solar cells and wind turbines.
Michigan's chemical industry is especially well-positioned to benefit from "the shale gale," given its ready access to a pipeline delivering natural gas from the Marcellus Shale to Sarnia, Ontario, its access to the Great Lakes and its proximity to the US industrial heartland, the ACC report said.
A White House jobs report issued in early January credited the boom in low-cost natural gas from shale for helping to revive the nation's manufacturing sector and fueling America's economic rebound.
