The US Moves 'Away from Naphtha' — Natural Gas-Derived Ethane Redraws the Map of the Global Chemical Industry

Explanation

Much of the plastic around us is made from a substance called 'ethylene.' Ethylene is extracted by breaking down (cracking) hydrocarbon feedstocks at high temperatures.

The choice of 'what feedstock to use' is now reshaping the balance of power in the global chemical industry. Japan and other parts of Asia have used 'naphtha' derived from petroleum. The United States, on the other hand, can use 'ethane,' which is obtained cheaply and in large quantities from shale gas (natural gas found underground). Because ethane is cheaper than naphtha and allows ethylene to be produced efficiently, American chemical manufacturers are gaining an advantage in price competition.

This is itself a major theme in social studies: 'where a country obtains its resources' determines its industrial competitiveness. At the same time, it connects to the basics of chemistry, such as hydrocarbons, ethylene, and cracking. Depending on energy prices and international conditions, this map will likely continue to shift going forward.