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American Chemistry Council CEO Cal Dooley breaks down how natural gas is impacting the chemical industry and why it's good news for the U.S.
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Now -- delicious -- sluggish labor market is fueling demand for jobs and according to our next guest one booming industry could trigger manufacturing.
Revival.
Joining us -- -- cal Dooley American chemist chemistry council's CEO.
And president cal.
We've been hearing so many great things about natural gas but I don't think the general public still understands.
What kind of a significant impact that's having already and potential in the future so -- them.
-- it's really -- a dramatic impact on the US chemical industry.
You know we use natural gas is -- feed stock it's kind of like what flour is -- bakery.
And so the chemical industry takes natural gas and -- makes plastics composites and make -- food packaging materials and makes textiles.
It -- and -- thousands of different products.
And we have gone round and just the last five years from being -- the high cost producers of chemicals globally.
And now where among the lowest cost producers of chemicals and that's good news for US chemical manufacturers in the people we employed.
So -- so we're talking about Nat gas having -- -- effect that's just it might be invisible on the surface but certainly.
Impacting this nation.
What kind of put kind of if it grows that the rate it's going right now natural -- gas fracking success.
What kind of job creation will ultimately have.
Well at the American Chemistry Council we did a study just out last year where we -- debt.
You know these really see the 25% increase in the supplies of natural gas which were confident we have in the United States.
That it would mean to the chemical industry and our downstream partners we creation of -- least 400000.
Additional jobs.
It would result in an additional sixteen billion in capital investment.
And new plant and equipment.
And you know what we actually think it's going to be more than that in the next few years.
I -- and support this 400000 is specifically chemicals is not the miners is not the transportation.
This is specifically in your industry of chemical -- of chemicals.
It would be the chemical manufactures.
And then while we sell into the auto manufactures.
And that -- that -- that downstream partners we have so it's it does include some of the -- customers in the manufacturing economy that we sell to.
Our -- you these days we can't that can't be all rosy now recently -- -- what my son do while watching this thing on on the Internet were.
I don't those like the size of a country not the book last exploding in the middle of the ocean and we're hearing that this stuff is really so dangerous.
We need to clamp down on that we need to clamp down on fracking which is harming our drinking water.
As is this that threat is this potentially a huge threat that would obviously is a booming industry.
You know we have to you know be commanded to be we side claim and that we use all materials be they steel glass or plastics and certainly the industry.
As at the forefront and trying to find solutions to that.
But you know what just as we can demonstrate that we can extract natural gas from shale formations and environmentally responsible manner.
We can ensure that we are manufacturing.
These chemicals in a safe manner and we can ensure that consumers are using them and it's safe manner and they are also -- -- -- their end of life long.
I'm glad you can ensure that because you're gonna be called to the -- on that we've got thirty seconds one other potential problem Nat gas so cheap.
That did they stop looking forward I mean in other words you can't make any money discovering it and pulling it out of the ground.
How are you fits with respect to maybe -- in that gas prices would that impact in the year -- -- numbers.
Well where we have a great deal -- confidence in the marketplace and the forces of supply and demand they're going to at the end and share.
That were able to capitalize in the United States and our significant.
Supplies of natural gas.
That'll ensure the chemical industry and other manufacturers.
All have access did this resource at a very competitive price.
Which will manifests itself and what we think we'll be a Renaissance in manufacturing in the United States.
400000.
Jobs you won't get an argument for me thanks cal Dooley American Chemistry Council president ends.
