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The soaring price of natural gas has caused the U.S. chemical industry to suffer the most adverse effects. The chemical industry is the largest user of natural gas in the US industrial sector, and natural gas is both energy and raw material. In addition, natural gas prices are closely related to many ordinary consumers, and 55% of households in the United States use their heating in winter.
The American Chemistry Council stated that for a manufacturing industry that relies on natural gas and competes globally, such a high price of natural gas is bound to hinder the sustainable development of the industry. If natural gas prices continue to rise, it is likely to bring about the consequences of "demand collapse." As production costs continue to rise, the US chemical industry will become increasingly unfavorable in global competition. In the end, only the production line will have to be shut down to reduce production, resulting in a drop in the output value of the chemical industry and an increase in the unemployment rate.
The two hurricanes have had a serious impact on the oil and gas industry in the United States, which has exacerbated the already tight supply of natural gas and oil products during the heating period from October to March next year. After the hurricane, due to the supply shortage, the price of natural gas in the United States has now risen to 14 US dollars per million British thermal units, compared with only 2 US dollars 6 years ago. EIA expects gas prices to increase at a double-digit rate in the coming months.
The supply of natural gas in the United States is in short supply. ACC believes that the chemical industry is adversely affected by high gas prices.
The US Energy Information Administration (EIA) predicted in the short-term trend of energy prices released last week that the price of natural gas in the United States this winter will increase by 29% to 44% over the same period of last year. In response to rising gas prices, the American Chemical Council (ACC) called for Congress to introduce remedial measures to reduce the negative impact on the chemical industry.