Is $100 Billion Worth of Spending All for Naught?
You don't have to tell chemical manufacturers in the United States about the energy boom going on. They are all well aware, which is why, together, they have planned over $100 billion worth of expansion projects. Some are even going as far as to disassemble plants abroad and move them stateside. Both Nucor and Methanex Corp targeted Louisiana as the ideal spot to relocate steel production and methanol production facilities to, respectively.
These plans don't come cheaply, which is why many, such as Dow Chemical , have been outspoken against unchecked natural gas exports from the United States. We have already conditionally approved the exportation of up to 15% of our current demand, so further approvals could put us in a vise unless production begins to pick up again. Tune in to the short clip below for analysis on further implications for these companies.
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This segment is from Tuesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy.
The article Is $100 Billion Worth of Spending All for Naught? originally appeared on Fool.com.Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Nucor. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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