New Shell cracker plant promises to power Erie plastics manufacturing

2022-09-17 03:16:05 By : Ms. Sarah Zhang

Pennsylvania has a strong reputation for being a hub in providing the items that make our world go around. From steelmaking and energy development to medical devices and agriculture, these bedrock industries in our state also play an enormous role in uplifting the American economy. 

Fueled by an innovative spirit, first-class workforce, and a commitment to finding new and improved ways to make things, Pennsylvania is well-equipped to lead America's manufacturing rebirth. 

But often left unrecognized is the role our region's energy abundance plays in catalyzing growth in this sector. Versatile and clean, and abundant, natural gas is often the fuel of choice for heat and power-intense manufacturing like steel, cement, glass, paper products, pharmaceuticals and other essentials. Moreover, hydrocarbon molecules found in natural gas liquids (NGLs) are the chemical building blocks for products we use every day. 

Chemical manufacturing investments driven by shale development topped $200 billion since 2010, according to the American Chemistry Council, thanks to the low-cost, low-carbon characteristics and availability of the resource. 

"[Natural gas] is and will remain a key energy source as our nation strives to deploy renewable energy infrastructure, enhance grid reliability, and develop and adopt innovative lower-emissions technologies in manufacturing and beyond," ACC president and CEO Chris Jahn said. 

More:Plastics injection in Erie: Shell plant could mold industry

Shell's $6 billion investment in western Pennsylvania for petrochemical development was a turning point in the state's manufacturing renaissance. With that facility becoming operational this fall, many eagerly anticipate what's next. There is a bright future in using the energy produced in the Marcellus Shale region to support and grow Erie's formidable manufacturing sector. 

Erie's plastics manufacturers are primed to benefit from the Shell facility with nearby availability of resins. And, Penn State Behrend is training the future workforce in one of only a handful of accredited undergraduate plastics engineering programs in the entire country. 

As manufacturers leverage the affordability and reliability of the region's shale abundance, businesses have the ability to use the energy cost savings to reinvest by adding more production lines and/or opening new facilities. 

Electric power generators in Pennsylvania have also benefitted from the availability of ample, clean natural gas.  The commonwealth is a net exporter of electric power and is the leading power exporter in the country, supporting consumers in our neighboring states and beyond. Thanks to increased natural gas-fueled power, the nation's air is cleaner than it has been in generations and Pennsylvania's power generation sector has decreased carbon emissions by 40%.  

More:Guest Opinion: Energy production is important to Pennsylvania’s environmental future

That's real and sustainable economic and environmental progress. 

All sectors of the economy are impacted by the recent increase in energy prices from their historic lows. Government policies, global events and general inflationary pressures have combined to imbalance energy supply and demand.  Increasing supplies of natural gas will help alleviate the imbalance. Government policies must accommodate not only the development of Pennsylvania's resources but also the infrastructure necessary to transport the product to market. 

Our nation is in desperate need of a balanced approach to energy that takes into consideration reliability, price environment, and accessibility. With the right policies and infrastructure in place, Erie and the broader region will continue to be a "Made in the U.S.A." leader. 

Dave Callahan is president of the Pittsburgh-based Marcellus Shale Coalition. Learn more at MarcellusCoalition.org. The SHALE INSIGHT 2022 Conference will be held on September 27-29 in Erie at the Bayfront Convention Center.