Those banking on reviving Appalachia with shale gas and plastics would do well to think again, says a new report. A resource glut and competition from renewables are liable to make the former unprofitable, while market forces are seriously reducing the odds of the latter’s success.
Citing a new report by the U.S. branch of the Stockholm Environment Institute (SEI) and the Ohio River Valley Institute (ORVI), DeSmog writes that natural gas prices are likely to remain too low for new ventures in the Marcellus Shale region, while “volatile market conditions for plastics” are undercutting Appalachia’s plans to become a petrochemicals-for-plastics powerhouse.
“The risks are becoming insurmountable,” Tom Sanzillo, director of finance at the Institute for Energy Economics and Financial Analysis (IEEFA), said in a release last year. “The price of plastics is sinking and the market is already oversupplied due to industry overbuilding and increased competition.”