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Dow's Investment Signals Confidence that Shale Boom to Last Another Decade

By Ilya Batikov

From Forbes:

Dow Chemical is investing $6 billion to enlarge its manufacturing facilities in the United States by 40 percent, based on a wager that low natural gas prices here will persist into the middle of the next decade, a Dow executive said in Chicago this week.

The investment reverses Dow’s vocal exodus from manufacturing in the United States, said Doug May, Dow’s business president of olefins, aromatics, and alternatives, during the Kellogg School of Management Energy Conference Wednesday at Northwestern University.

“We’re putting $6 billion here in the U.S. Gulf Coast, betting that the gas advantage maintains for us to get a suitable return on that investment, which is into the next decade,” May told about 125 people, mostly graduate students, assembled at the management school.

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Tags: Boom, Oil and Gas, Energy, Shale

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