Home / Knowledge / News / Textiles / UK runs risk of losing petrochemical industry
UK runs risk of losing petrochemical industry
24
Jul '14
If the UK does not develop its shale resources in a timely fashion, it runs a serious risk of losing the energy intensive and petrochemical industries which depend on competitively-priced energy and raw materials and which employ around 250,000 people, says the report on Session 2013-14 of the Economic Affairs Committee, House of Lords.
 
The report titled ‘The Economic Impact on UK Energy Policy of Shale Gas and Oil’, says that investment is rising fast in energy intensive industries and petrochemicals in the US, since cheap shale gas makes “reshoring” of overseas plants economic.
 
The report quotes Mr. Tom Crotty of INEOS, who says that the cost of energy in the UK is three times that in the US and the Middle East—the two major competitors for the manufacture of petrochemicals.
 
In such a scenario, development of shale gas in the UK on a significant scale could provide substantial benefits, including reduced costs for energy intensive businesses and the petrochemicals sector that also use gas as a feedstock, states the report.
 
Falling energy prices due to development of shale resources in the US is encouraging the repatriation (or “reshoring”) of energy intensive businesses, including petrochemicals. Mr. Tom Crotty of INEOS said “There has been no new investment in the petrochemical industry in the United States for 25 years. There are now 11 major facilities under construction and another seven in the planning phase.”
 
 European firms are also reported to be moving production to the US, the report mentions.
 
The low gas prices in the US had led to an investment boom in energy-intensive and petrochemical industries, which presents “a serious long-term competitive threat”. As a result, at the moment, there are no new investments in any energy-intensive industries in Europe. Even INEOS plans to use imported US shale-derived feedstock in their chemical plants at Grangemouth.
 
Indigenous shale gas could provide competitively priced fuel and feedstock that energy intensive industry in the UK needs in the longer term. Substantial shale gas production in the UK could help retain and develop energy intensive industries and provide feedstock to petrochemical plants. If however there is no prospect that the UK’s shale gas resource will be developed within a reasonable timescale, energy intensive industry is likely to move elsewhere, the report states.
 

Fibre2fashion News Desk - India


Must ReadView All

US FTC updates textile rules to drop obsolete requirement

Textiles | On 23rd Jan 2018

US FTC updates textile rules to drop obsolete requirement

The US Federal Trade Commission has eliminated an obsolete provision...

Indian textile industry at inflection point: Report

Textiles | On 23rd Jan 2018

Indian textile industry at inflection point: Report

The textile and apparel sector of India is at an inflection point...

Ghana to set up equipment hub for apparel sector

Apparel/Garments | On 23rd Jan 2018

Ghana to set up equipment hub for apparel sector

As part of efforts to seek ways to improve market access for Ghana’s...

Interviews View All

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search