Credit: Shutterstock photoThe Dow Chemical Company ( DOW ) expressed its delight at the Department of Energy's (DOE) proposal which stated that it will modify its liquefied natural gas (LNG) export review process. DOE proposed modification of its procedure for reviewing applications to export LNG to countries that have not participated in any free trade agreements (FTA) with the U.S.
Dow remains optimistic and believes that these modifications will protect against a rush toward exports, thus protecting the American consumer from natural gas price spikes and volatility.
The DOE also announced a new study which looks beyond the implication of exports of up to 20bcf/day and considers other aspects like expected increases in demand, especially in electricity generation and industrial use. An analysis of the demand for U.S. natural gas will enable the DOE to understand the cost requirements and benefits of natural gas exports and the resultant impact on homeowner energy bills and American manufacturing jobs.
Companies worldwide are joining forces with their American counterparts and investing in the U.S. to take advantage of the country's new abundance of energy. This enables the U.S. economy to create more jobs and Dow also remains focused on strengthening the domestic economy.
Dow remains committed to its cost-reduction efforts under its "Efficiency for Growth" program. Its cost-containment measures and restructuring initiatives are expected to fetch combined annual savings of $2.5 billion.
Dow carries a Zacks Rank #3 (Hold).
Other companies in the chemical industry worth considering include Compass Minerals International Inc. ( CMP ), L'Air Liquide SA ( AIQUY ) and Koninklijke DSM N.V. ( RDSMY ). While Compass Minerals carries a Zacks Rank #1 (Strong Buy), L'Air Liquide and Koninklijke DSM hold a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
