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

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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.

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.

where will this plant be ?

Potter Township, Beaver County, PA

It is quite an impressive site.


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