Mark Jones
Executive External Strategy and Communications Fellow
The Dow Chemical Company
Overview of the Shale Gas
Boom and its Impact on the
Chemical Industry
Chemical Industry Key Concepts
•
Capital
•
Risk
•
Scale
•
Purity
•
Commoditization
Chemical Industry Snapshot
Polyolefin Growth
Our Previous Reality…..
10
Shale Gas Growth
Growth in NGLs
Rapid Change
15
Economic Impact of Shale Gas
Industry Growth
Exciting Times
Energy Cost
Falling Oil Prices
NGLs Still Advantaged In The U.S.
Naphtha vs Ethane Cracking Comparison
23
US Trend
25
What’s Gone Away?
26
C4
PDH
NGL Export
Scale Always Wins
30
If you are moving
mass and heat
Source of Confusion
A mixture containing a
Make The Cracker Better
Ethane Cracker Specific Energy Consumption
Cryogenic Separations (large capital cost, energy intensive)
Cracking Furnaces LHC-8 Freeport, TX
Splitter column >200 ft tall
Membrane Separations
Adsorbent Separations
33
Coal-to-Olefins
Methanol-to-Olefins
Announced Projects
BP Statistical Review of World Energy 2015
© BP p.l.c. 2015
Distribution of proved gas reserves: 1994, 2004 and 2014
Direct Methane Use
Long History
43
Dr. Madan M. Bhasin
Retired Corporate Fellow
Currently:
Chief Scientific Adviser, Mid-Atlantic Technology, Research & Innovation Center
The Dow Chemical Company
Elected 2006
Activity Peaked and Fell
Oxygen Storage Riser Idea
46
•
Solids density in risersets concentration of
“oxidant”
•
Riser velocity sets reaction time•
Reactor constrains bothcapacity and rate
Methane
Energy Cost
Breakthrough
copper systems
Cu performance
Lanthanide Catalyst
Options for Olefins
56
Avoid syngas
Avoid intermediates
(methane coupling)
Experience From 2004
1991 Top 50 U.S. Chemical Companies Today
Chemical Industry Key Concepts
