Joseph Chang, ICIS Chemical Business03.23.20
In the wake of the coronavirus and collapse in crude oil prices, chemical, and oil and gas, and midstream companies will all slash capital spending (capex) for growth projects to preserve cash.
As a result, the US and global chemical investment wave look to slow considerably in the years ahead.
While major US chemical projects under construction should continue, the fall in Brent crude oil prices and the shrinking of the Brent/US Henry Hub natural gas ratio from the 30s to the mid-teens “puts into question the economics long term,” said Kevin Swift, chief economist of the American Chemistry Council (ACC) speaking on an ICIS webinar on the economic outlook on March 19. “This creates an awful lot of uncertainty, and decision-makers don’t like uncertainty."
This year, US-based Dow had already taken down its capex plan to $1.5 billion for 2020 from $2 billion in 2019.
However, on a March 16 appeara
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