December 21, 2016
The slowly increasing cost of oil has given the chemical industry of Louisiana some hope that 2017 will be a better year. Proponents are looking to Louisiana’s plant owners to move forward with the more than $24 million in capital investment that is currently in the pipeline.
Many of the projects were announced when oil was at $100 a barrel, and natural gas prices were higher. However, the projects were put on hold when oil prices fell.
At this point, however, it’s believed that the delay in some projects might be good. Manpower in various parishes throughout Louisiana has dropped, due to job loss. Lake Charles, for example, has seen a depletion in qualified workers.
However, according to American Chemistry Council economist Kevin Swift, capital spending will grow by 7.8% in 2017, and 7.2% in 2018. The most dynamic growth, he noted, will take place in the Gulf Coast region over the next five years.
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