United States petrochemical industry impact analysis. Report to the Petrochemical Energy Group

Technical Report · Thu Nov 01 04:00:00 EST 1973

OSTI ID:7221238

Shortages of oil and gas in the United States forced the Federal Government to implement a Mandatory Fuel Allocation Program, a Mandatory Allocation Program for Propane, and to supervise an expanding level of curtailments in natural gas supplies to interstate pipelines. These shortages had a significant impact on the whole economy and the petrochemical industry as a major consumer of oil and gas hydrocarbons was directly affected. As a result of the shortages, it is not unrealistic to expect that petrochemical production will decline in the near future. To assess the impact of a decline in petrochemical production on the nation's economy as a whole, the Petrochemical Energy Group (PEG) asked Arthur D. Little, Inc. (ADL) to develop an estimate of the effect of a 15% decline in the organic chemicals industry on consuming industries. Through the use of input-output economic analysis, ADL estimated that a sustained 15% reduction in the output of the organic chemicals industry could result in a loss of 1.6 to 1.8 million jobs in consuming industries and a loss of domestic production value of $65 to 70 billion annually.

• Research Organization: Little (Arthur D.), Inc., Cambridge, MA (USA)
• OSTI ID: 7221238
• Report Number(s): NP-22203
• Country of Publication: United States
• Language: English

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