Ongoing Shale Gas Finds Ensure Thermax® Stability

Cancarb’s Thermax® medium thermal carbon black is manufactured in Medicine Hat, Alberta, Canada using commercial grade, pipeline quality natural gas.

Historically this gas was accessed using traditional drilling methods. Next generation gas drilling techniques continue to evolve allowing the market access to previously unavailable large shale gas reserves.

In fact, North America discoveries of natural gas in shale deposits continues unabated. Approximately 28 trillion cubic feet (Tcf) of natural gas was produced in 2015 alone, mainly with the access to gas located in the Appalachian Mountains’ Marcellus and Utica shale reserves. This boom is expected to continue with gas production forecasted to reach 40Tcf by 2040. Needless to say, there are plentiful reserves in North America with enough gas to meet demand for the long term.

In addition, North American gas supply is unaffected by global geopolitical events. The same stability is not present in the global crude oil market, the source of feedstocks for furnace carbon black and many other chemicals. As a result, the prices of furnace carbon black and crude oil derived polymer/plastics are expected to be much more upwardly volatile due to the political uncertainties in the global crude oil market.

To learn more about what this means for Thermax® customers, follow this link to Cancarb’s eNews September issue.