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Back You are here: Home News Industry Headlines End-User News U.S. Shale Boom Drastically Altering European Petrochemical Industry

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U.S. Shale Boom Drastically Altering European Petrochemical Industry

“Europe's petrochemical industry will face a competitive assault as U.S. rivals emerge with cheap feedstock from the shale gas boom. It can look to the refining industry now for a taste of what is to come” as American refiners “flood Europe with cheap fuel made from low-cost shale oil and gas,” according to new analysis from Reuters.

"Refining responded quickly as there was under-utilized capacity in the U.S. Other industries will take time to build the required infrastructure, but those build-outs are underway, and the pain for European petchems is coming," says Seth Kleinman, head of energy research at Citi.

Another result of this cheaper gas, according to Lars Hettche of German bank Metzler, is that "Europe's bigger chemical companies are spending up to 25% of capital expenditure in North America compared with around 10% around four or five years ago."

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