WASHINGTON--(BUSINESS WIRE)--Representing The Dow Chemical Company (NYSE: DOW), George Biltz, corporate vice president and vice president of energy and climate change, testified yesterday before the U.S. Senate Committee on Energy and Natural Resources about the future of natural gas and the opportunity for a U.S. manufacturing renaissance fueled by competitively-priced natural gas.
“Natural gas can be a game changer. It can fuel a renaissance in American manufacturing, but only if we produce enough of it, use it wisely and don’t repeat the mistakes of the past,” Biltz said. “We can create the best opportunity if we enact policies to encourage natural gas production, avoid legislating natural gas demand and enact a comprehensive energy policy to improve American energy security.”
Dow was the only industry witness; the company is one of the largest industrial users of natural gas, using it both as a fuel for heating, cooling and processing, as well as a raw material for the manufacturing of chemicals and other products. Manufacturers like Dow turn natural gas and natural gas liquids into everyday products, such as insulation and food packaging, as well as advanced materials that support wind and solar energy.
Biltz informed the Committee that using natural gas for manufacturing provides an eight-fold multiplier in value to the economy by adding jobs and products into the market. Research has shown that a 25 percent increase in ethane supply, a petrochemical byproduct of natural gas, would generate:
- 17,000 direct, high-paying jobs
- $4.4 billion in annual tax revenue
- $33 billion increase in U.S. chemical production
- $132 billion in U.S. economic output
Leveraging U.S. natural gas reserves, Dow is currently investing more than $500 million on ethane cracking and ethylene supply on the U.S. Gulf Coast and has proposed further plans representing billions of dollars. The company is also focusing on increasing its ethylene and propylene production, as well as integrating feedstock supply from recent shale gas discoveries.
“The future of natural gas is very bright. It will play a vital role in meeting the nation’s energy demand over the next decades and be critical for the growth of U.S. manufacturing,” said Biltz.
About Dow
Dow (NYSE: Dow) combines the power of science and technology with the "Human Element" to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world's most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow's diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2010, Dow had annual sales of $53.7 billion and employed approximately 50,000 people worldwide. The Company's more than 5,000 products are manufactured at 188 sites in 35 countries across the globe. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.