Shale & Downstream Update

Transcription

1 Shale & Downstream Update Lunch & Learn August 20, 2018 Paul Boulier Over 96% of all manufactured goods are touched by the Chemistry Industry Chemistry Industry directly employs >42,000 people in OH; it indirectly employs over 230,000 people in OH *American Chemistry Council 1

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3 Shale Gas Yields Many Products Power NGLs Consumer Products Medical Devices Packaging Injection Molding, Extrusion, Blow Molding, etc. Fuel (CNG, LPG, LNG*) Ethane Propane Butane Pentane C5+ Chemicals & Plastics Further Processing *CNG, compressed Natural Gas (methane), ~3,000psig LNG, Liquified Natural Gas (methane), (-260F, liquid) LPG, mix of gases (propane, butane, propylene, butylene, etc.) Adhesives Paints & Coatings Household Cleaners 3 3

4 Growth-Domestic & Global. In Ohio, it represents ~$34 B in output (20% is exported), 43k jobs, average wage of $76,000/yr 3 4

5 NGLs & Downstream Shale Value Chain Our region s shale opportunity comes by making this manufacturing value chain more globally competitive >$65B in OH alone, ** >$179B Nationally* >$35B Nationally** Infrastructure Build Positioning, Scaleup, Buildout **CSU Study 5 *American Chemistry Council, investments since 2010 (includes ~$25B for resins) *ACC, investments since 2012, >400 projects, Compounding & Plastic Products 5

6 Natural Gas output increasing, driving continued Investment in OH and the Region 5 Sources: U. S. Energy Information Association, Cleveland State University 6

7 Nationally By the Numbers NEO By the Numbers Shale & Downstream Wins from projects 4,100 new jobs created $2,300,000,000 in Capital Investment 7

8 Petrochemical & Downstream Manufacturers within 400 Miles: 17,477 Companies 250 Large* Chemical Companies: Ohio ~180 PA ~ 50 WV ~ 20 Chemical Manufacturers (purple):6,371 Companies Plastic Converters (blue): 8,147 Companies *Large Company=>100 employees Rubber Mfg. & Conv. (brown): 1,812 Companies Plastics Mfg. (green): 1,147 Companies 6 8

9 Build Out of Shale & Downstream has Tremendous Upside for our Region* * The Potential Benefits of an Appalachian Petrochemical Industry, American Chemistry Council, May,

10 Tri-State Shale Coalition (TSSC) Founding Members/Steering Team and Core Team Team NEO, APEG, JobsOhio Benedum Foundation, Pittsburgh Reg. Alliance/Allegh. Conf., PA DCED VisionShared/WV Dept. of Commerce Single Point of contact with each Governor s office Governors Cooperation Agreement (10/15; renewed 3/18) Four Streams: Transportation & Infrastructure, Marketing, Workforce, Research/Innovation/Commercialization Facilitated Appalachian Storage Hub Study Collaboration between OH, PA, WV Geological Surveys-completed 7/17 Funders: Benedum Foundation, Chevron, Southwestern Energy, EQT, AEP, First Energy, XTO, Mountaineer NGL, Antero, WVONGA, Noble, Dominion, Blue Racer-$200K raised Identified three strong areas with ethane storage potential 8 10

11 Most Attractive Regions From A Geological Study to Determine the Potential to Create an Appalachian Storage Hub for Natural Gas Liquids, 7/31/

12 TSSC (continued) Marketing the Region Presentations on Tri-State s Value Proposition at numerous venues in/out of our Region (Nationally and Internationally) Outreach to Industry and Trade Associations and Economic Dev. K Fair, American Chemistry Council, NE US & Canada Petchem Conference, 2017 International Elastomer Conference, 2017 Global Plastics Summit Energy/Downstream Intelligence Report, Site Selector Magazine (January) Executing project with outside firm to develop Naming/Branding strategy for Region Research/Innovation/Commercialization Developing agreement/mou between Universities to cooperate and help position and promote their Applied Research capabilities Workforce Coordination of training and development in anticipation of Shell ethylene/pe (CCBC) and other Midstream and Downstream assets TEAM (Tri-State Energy and Advanced Manufacturing Consortium TSSC Summit IV 10 12

13 Cheap, plentiful electricity Tight, aligned Supply Chain for Chemicals, Plastics, Rubbers, Metals & Converted Products Improved Manufacturing Efficiency Gas & NGLs Low-cost (vs. USGC) Logistics & Transport NEO s Value Proposition for Chemicals & Plastics Road Rail Sea Air Proximity To Markets >60% of Consumers Within 500 mi: Auto Aviation Medical Cons. Products Industrial Value Add Innovation IP Creation& Protection Skilled Labor, Higher Ed Strong Export Potential Established Infrastructure 13 13

14 How Does the Region Stack Up? 14

15 Petrochemical & Downstream Manufacturers within 400 Miles: 17,477 Companies 15 15

16 Experienced Talent Pool 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% Percent of Workforce Employed in Chemical Manufacturing United States Tech Belt (OH, WV, PA) Philadephia MSA Houston MSA 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Percent of Workforce Employed in Fabricated Metal Product Manufacturing Philadephia MSA United States Houston MSA Tech Belt (OH, WV, PA) 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% Percent of Workforce Employed in Plastic and Rubber Product Manufacturing Houston MSA Philadephia MSA United States Tech Belt (OH, WV, PA) 16

17 Ample Pipeline of Talent from 51 Colleges & Universities Degrees Awarded Chemical Engineering General Chemistry Industrial Engineering Materials Science Materials Engineering Polymer/Plastics Engineering Tech Belt (OH, WV, PA) Houston Region *TechBelt data includes degrees from Ohio State University and Penn State University **Houston data includes degrees from University of Texas Austin Source: EMSI 17

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19 Thank you! 19