Shale Gas Impact on Tackifier Feedstocks

With the advent of shale gas, the U.S. petrochemical industry has witnessed a significant shift in feedstock from naphtha to natural gas (ethane). The shift is greatly supported by higher margins, higher yield of ethylene and lower cost of production enjoyed by the ethane-based ethylene producers, as compared to the naphtha-based producers.

As a result, a significant drop in the yield of other byproducts is evident in the case of ethane cracking, which is now becoming a major concern for adhesives producers and buyers since most of the raw materials are petroleum based. This leads to industry-wide supply uncertainty across the globe, because the majority of industrial chemicals are byproducts of naphtha cracking.