The last couple of weeks of 2014 are proving to be interesting as well as exciting for the petrochem, polymer, and overall plastics industries. According to respected voices in the plastics industry and economic analysts abroad, the slump in oil prices could be a boon to plastics manufacturers and boost the general economy on a global scale. With natural gas futures dropping below $3, and warm temperatures through the end of the year, the transition from coal to gas is going smoothly, with nothing scary on the horizon. 2015 could be a banner year for plastics, and prosperity for American businesses since oil prices affect 25% of America’s GDP.
Slumping Oil Prices Boost 25% of U.S. Economy
Russian journalist Kristian Rouz, in a Sputnik News article, wrote that although the oil and gas prices have suffered a major downturn causing some setbacks within the industry, the depreciating oil prices will trigger prosperity in business that could account for as much as 25% of America’s GDP.
Plunging Oil Could Deliver Windfall to Consumers, Manufacturers
A comprehensive article by plastemart.com, a respected voice in the industry, explains in detail the effects of low energy prices on the oil and gas industries as well as the benefits of low prices to consumers and manufacturers on a global level.
The article clearly explains the impact of low oil prices on the petrochemical and naphtha industries. It goes on to address the indices predicting the underperformance of European countries when compared to North America. It also paints a clear picture of the differences of the impact on America as opposed to Japan, followed by the new capacities and expansions that can be expected in the petrochem and polymer industries.
The report culminates in a prediction from the Chief Economist at HIS who said, “Positive fundamentals are in place for the momentum in the global economy to improve during 2015,” which expects global growth to pick up to 3% from an estimated 2.7% this year.
Oil Prices Prompt Drillers to Scrap Old Rigs
Bloomberg Business Week reports that old rigs are being retired at an abnormal rate due to offshore drilling rig contractors attempting to maintain high profit pictures amid current oil market conditions.
Natural Gas Dips Below $3
According to Bloomberg News reporter Naureen S. Malik, natural gas dipped below $3 per million BTU for the first time since 2012. Balmy temperatures resulted in low prices, “We don’t see anything scary in the forecast,” said Stephen Schork, president of Schork Group, Inc. a consulting group in Villanova, PA.