Elaine Burridge reports
The North American chemical industry has been transformed in recent years by the development of shale gas which has restored the country’s competitiveness on the global stage. The availability of low-cost feedstock has boosted chemical production and spawned a multitude of investments in petrochemical plants. This boom has also boosted business for chemical logistics suppliers such as ChemLogix. The Blue Bell, Pennsylvania headquartered company, part of CLX Logistics, says the impact from shale on its business has been enormous as demand from shale wells has consumed any available tank containers and railcars. Mike Challman, Vice President of ChemLogix’ North American operations, says there has been a lot of challenges around transport availability but, since the oil price dropped earlier this year, much of the pressure has faded. “A number of our customers provide various services to the shale industry. Nobody is opening new holes in the ground. Business has slowed and will not pick up until the oil price recovers and makes it worthwhile again,” he says, adding that the industry needs to be ready to face the capacity squeeze again once oil prices rebound and demand returns. Oil prices have more than halved since 2014. The price of West Texas intermediate (WTI) crude oil has .........
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https://www.tankcontainermedia.com/subscribe/ February 12, 2016