Ethylene is a two carbon molecule and a basic building block for many materials.
Ethylene is derived from crude oil and natural gas. US drilling will primarily impact pricing and availability:
1. Ethylene supply comes primarily from frac-ed wells, rather than traditional drilling methods.
2. Frac-ed wells are more expensive to drill and have a shorter life than traditional wells. When the price of oil goes down, frac-ed wells are usually the first to shut down, thus more quickly reducing the supply of ethylene feed stocks.
Up Stream Materials/Building Blocks:
Down Steam Consumer of Ethylene:
Ethylene Glycol Ethers
Ethylene Glycol Ethers Acetates
Polyethylene Terephthalate (PET)
Polyvinylidene Chloride (PVC)
Propyl Alcohol, N
Styrene Butadiene Rubber
Unsaturated Polyester Resins