As Natural Gas Prices Rise, So Do the Costs of Things Made of Chemicals
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Title: As Natural Gas Prices Rise, So Do the Costs of Things Made of Chemicals

Essay Details:

Subject: Business
Author: Anne P
Date: February 22, 2015
Level: University
Grade: A
Length: 2 / 405

Essay text:

The most obvious place we see the cost of gas is at the pump, but the underlying effects can be even more costly. This year gas and oil accounted for 43 percent of Dow's costs whereas in 2002 it was 29 percent. The increase in natural gas price increases the cost of production in almost every industry thus raising the cost of the product. This goes double for chemical companies because gas is not only their major source of fuel but also their major raw material, the starting point for the basic chemicals from which the fibers and compounds in items such as shirts and eyeglasses are derived. Every company uses these chemicals; even a completely organic bushel of tomatoes is sold to you in a plastic bag...

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