FACT SHEET MAY 2019

Triple Threat: Petrochemicals and Plastics, Power Plants,

and Exports Drive a New Fracking Boom
)UDFNLQJKDVXQOHDVKHGPRUHQDWXUDOJDVWKDQWKHLQGXVWU\FDQXVHFXWWLQJLQWRSURȴWVDQG
putting frackers out of business. To alleviate the gas glut and save the industry, gas producers are
relying on a new wave of dirty infrastructure that would transform gas into petrochemicals and
plastics, burn it for dirty energy or transport it to overseas markets. If built, these facilities will
lock in both fracking and toxic facilities for decades.

Fracked gas production surged more than 15-fold from

WRWKHȴUVWKDOIRI1 This additional gas has
SXVKHGUHDOLQȵDWLRQDGMXVWHGQDWXUDOJDVSULFHVWRWKHLU
lowest levels in decades, now 60 percent lower than
LQ2 Producers fear that without infrastructure to
relieve the glut, drilling and fracking will slow dramati-
FDOO\37REHFRPHSURȴWDEOHDJDLQIUDFNLQJQHHGVQHZ
markets (exports), new end users (petrochemical and
power plants) and new products (plastics) to drive up gas
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Petrochemicals and Plastics

In addition to methane, fracking has produced an oversup-
SO\RIFKHDSHWKDQH(WKDQHLVDIUDFNLQJE\SURGXFWWKDW
has been a boon for the plastics industry, which relies on
petrochemical manufacturing to turn ethane into plastics5
More fracking means more ethane and more plastics and
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PRUHGULOOLQJ

Investors are lining up to build new factories that trans- Gas-Fired Power Plants
IRUPIUDFNLQJE\SURGXFWVLQWRSODVWLFV6ΖQWKHFKHPL- In addition to turning gas into plastics, a push is under way
cal industry was slated to spend over $202 billion on 333 WREXUQJDVDWQHZJDVȴUHGSRZHUSODQWV7KH86'HSDUW-
IDFLOLWLHVWRWDNHDGYDQWDJHRIVKDOHJDV7 This investment is PHQWRI(QHUJ\'2(SURMHFWVWKDWQHZJDVȴUHG
targeted primarily for Appalachia and the Gulf Coast, and JHQHUDWRUVZLOOEHEXLOWEHWZHHQDQG10 In 2017
could drive a 40 percent increase in global plastics produc- DQGDORQHQHZJDVSODQWVZRXOGSURYLGHSHUFHQW
WLRQRYHUWKHQH[WGHFDGH PRUHHQHUJ\WKDQLQ11 This added electric generation
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Unfortunately, plants that convert natural gas into petro- KRXVHKROGV12
chemicals emit massive amounts of air and climate pollut-
ants, and pump out mountains of toxic plastics,WKHPDMRULW\ The demand for electricity is not rising as fast as new gas
RIZKLFKDUHLPPHGLDWHO\WKURZQDZD\9 plants are coming online, creating the potential for new gas

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 Triple Threat: Petrochemicals and Plastics, Power Plants, and Exports Drive a New Fracking Boom
SRZHUSODQWVWRFUHDWHDSRZHUVXSSO\JOXW13 New gas plants
drive additional gas drilling, cement the dominance of fossil
fuels in our energy grid, lock in greenhouse gas emissions
DQGGLVSODFHLQYHVWPHQWVLQUHQHZDEOHV14
Export Terminals
The industry also hopes to tighten the domestic market
IRUQDWXUDOJDVE\H[SRUWLQJLW7KHVHH[SRUWVZRXOGVXSHU
FKDUJHDGGLWLRQDOIUDFNLQJZLWKSHUFHQWRIWKHLQFUHDVHG
H[SRUWVȴOOHGE\JDVIURPQHZZHOOV156RPHJDVLVH[SRUWHG
by pipeline to Mexico and Canada, and the rest is shipped
E\WDQNHUIURPH[SRUWWHUPLQDOVWRRYHUVHDVPDUNHWV16
To be suitable for ocean transport, natural gas must be
VXSHUFRROHGDQGFRPSUHVVHGDWVSHFLDOWHUPLQDOV17 Lique-
faction facilities emit large amounts of air pollution, damage
marine habitats, release dangerous toxins into the water
DQGOHDNFRORVVDODPRXQWVRIPHWKDQH Tankers and facili-
WLHVDUHDOVRSURQHWRFDWDVWURSKLFH[SORVLRQV19
&XUUHQWO\WKH8QLWHG6WDWHVFDQOLTXHI\DQGH[SRUWELOOLRQ
FXELFIHHWRIQDWXUDOJDVSHUGD\DERXWSHUFHQWRI86JDV
production21ΖQWKHUHZHUHRQO\DFWLYH/1*H[SRUW
facilities in the country, but 22 more either were already
being built or were approved for construction, and another
ZHUHSHQGLQJIHGHUDOUHYLHZ22 By 2040, LNG exports
FRXOGEHDVKLJKDVELOOLRQFXELFIHHWSHUGD\PRUHWKDQ
DTXDUWHURIWKH'2(ȇVSURMHFWLRQIRUWKH86JDVVXSSO\23
Conclusion
The new petrochemical factories, power plants and LNG
exports will cushion the fracking industry by sopping up the
JDVJOXWWLJKWHQLQJWKHVXSSO\DQGUDLVLQJSULFHV:LWKRXW
the buildout of fracked gas infrastructure, the industry
would likely face more severe economic headwinds and be
XQDEOHWRUHLQYHVWLQPRUHGULOOLQJDQGH[SORUDWLRQ
Instead of doubling down on new fossil fuel facilities, we
PXVWLQYHVWLQFOHDQUHQHZDEOHHQHUJ\7HFKQRORJ\IRUD
large-scale transition to renewables at low cost exists24 —
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VWDWHVGHSDUWHGIURP&RYH3RLQW0DU\ODQGLQ20 ZLOOWRVHHWKHPWKURXJK

Endnotes
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