Long-term energy price and supply projections are always suspect. But for most manufacturers exposed to energy and resins price risk, it's worth asking, "How low can natural gas prices go? " Consider these recent articles:
Low Gas Prices Spur New Chemical Plants (WSJ, 12-27-11)
The boom in low-cost natural gas obtained from shale is driving investment in plants that use gas for fuel or as a raw material to make chemicals, plastics, fertilizer, steel, and other products.
Shale-gas production volumes will depend on environmental-protection rules set by state and federal regulators. Many environmentalists say that the chemicals pumped into the ground to unlock shale gas are a threat to water supplies....