Navigating U.S. supply chain disruptions

Market challenges and opportunities

What is the current situation?

As recently as 2008, the North American energy and petrochemical industries were considered mature, and many observers assumed the U.S. would be a net oil and gas importer for years to come. But since then, the U.S. has become awash with inexpensive gas and petrochemical feedstocks, a result of the shale-drilling revolution.

What does this mean?

The United States has become an attractive proposition for both domestic and foreign capital investment, but it is unlikely that the U.S. domestic market can absorb the resulting capacity increase. Chemical companies will need to look abroad for customers and redesign their supply chains to accommodate the growth in global trade.

What will it take to succeed?

The winning chemical companies will be those that increase the flexibility, speed and effectiveness of their supply chains to satisfy the demands of overseas customers. Others will struggle to capture the expected returns on their investments.