Cracker plant

With existing wells dropping off and cutting back on drilling how will this effect the new cracker plant ?

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Permalink Reply by BW_Appalachia on December 17, 2019 at 3:26am

Likely no effect.  Oversupply is, and will continue to be, one of the leading factors in the downturn.  Cutting back on future development doesn't cure oversupply in and of itself, and there will still be plenty of gas for Shell.

There's always been a lingering fear that Shell could always walk away, but it's very likely that they've passed the inflection point and are comfortable with go-forward demand for the product.

Permalink Reply by Bluflame on December 17, 2019 at 5:18am
The best news for Shell is that no other entity has bellied up to the bar for another cracker in our geography. Therefore Shell will exclusively enjoy a competitive advantage over any other supplier of polyethylene to the largest market in North America. All others must pay to ship their material from either the Gulf Coast or Canada. Not to mention that Utica/Marcellus ethane is plentiful and cheap. Shell made a good decision.
Permalink Reply by DSFS on December 17, 2019 at 5:35am

where will this plant be ?

Permalink Reply by BW_Appalachia on December 17, 2019 at 5:42am

Potter Township, Beaver County, PA

It is quite an impressive site.

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