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Congressman Bill Johnson (R-Marietta) released the following statement after an IHS Markit study highlighted the significant financial advantage of petrochemical manufacturing in the local “Shale Crescent” region when compared to the U.S. Gulf Coast:

“There is little doubt that due to this natural resource below our feet, Eastern and Southeastern Ohio, and the surrounding area, sits at the center of America’s energy renaissance,” Bill Johnson said.  “We have an abundant natural gas supply, access to water, proximity to major markets, and a ready and skilled labor force. It’s a major reason that an international petrochemical company is considering building an ethane cracker plant in Belmont County – which would be the largest construction project in Ohio history.”

The report from IHS Markit finds that the expected financial returns for a Shale Crescent USA project are higher than the U.S. Gulf Coast:

• ·         The findings conclude there will be a significant financial advantage for an ethylene/polyethylene investment in the Shale Crescent USA region compared to a similar investment on the US Gulf Coast.
• ·         The Shale Crescent USA region is in close proximity to over two-thirds of US polyethylene consumption.
• ·         An ethylene project in the Shale Crescent USA has a comparative advantage because of its access to ample supplies of locally produced low-cost ethane.

Johnson added, “Our region already produces more natural gas than many energy producing countries, and energy development is having a positive impact on virtually every sector of our economy. Natural gas is a key component of an ‘all of the above’ energy strategy, and we’re already seeing many benefits from this God-given resource. I fully expect this to continue – and only gain more steam.”