European Plastics News: Ratcliffe: Europe must go for shale gas

The chemicals industry faces dire consequences if Europe does not develop low-cost energy to make it competitive with other regions like the US which is benefiting from shale gas, says Jim Ratcliffe, chairman of Ineos.

“Europe has invested three times as much in renewables as the US has spent on shale. Europe’s energy balance gets 5% from renewables and the US gets 50% from shale. So who looks smarter, the Europeans or the Americans?” said Ratcliffe.

In a hard-hitting address in Brussels, he criticised the EU’s competitiveness strategy in relation to manufacturing, energy and raw material costs, and regulation. At the PolyTalk conference organised by PlasticsEurope, Ratcliffe spoke of the stark contrasts between the EU and the US that are impacting chemicals producers such as Ineos.

The group owns polymer and chemicals plants in both regions, with roughly two-thirds of its manufacturing assets in Europe and one-third in the US. Five to six years ago, two-thirds of Ineos’ profits came from Europe and one-third from the US, he said.
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