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The Texas “DEEP FREEZE” will result in a big shock to consumers. The shock will be due to shortages, as many of the plastic types we take for granted, used for such everyday things as milk jugs, hydrogen peroxide, even the numerous volume of plastic incorporated in today’s vehicles, could be in short supply.
The need for plastics related to treating COVID for such things as personal protective equipment (PPE), and hurricane-related flooding which shut petchem plants, led to a sharp drawdown in inventory,
For chemical producers restarting their complexes, the time needed to do a restart is three weeks minimum, as all equipment must be pulled apart and inspected.
If plant components must be replaced, the needed components may not be available. Every part of the supply chain is so connected today that if one piece of equipment must be replaced, there is a ripple effect throughout the entire chain.
It might be three months out before things are back to normal.
The hardships caused by COVID, hurricanes and the Texas Big Freeze are forcing numerous companies, analysts and consultants to take a closer look at supply chains, bringing more chain components back to the U.S. from China and other overseas venues.
Sone companies will look at other locations other than the Gulf Coast to establish petrochemical facilities.
The logical region to serve as the U.S.’s PetChem Hub No. 2 would be the Appalachian Basin, as it offers inexpensive natural gas for fuel/feedstock and is located within 700 miles of numerous plastic products wholesalers and customers.
