Do high natural gas prices doom the U.S. chemical industry?
They do not doom us. Our industry had capacity that was based on low-cost natural gas and partly built for export. What we’re seeing with natural gas prices north of $8 per million BTUs is that we’ve lost competitiveness as an exporter. Our view is that oil prices will go down over time. But we don’t expect that natural gas prices will go down. What you’re seeing is an intervention as we and others recalibrate our capacity in the U.S. to serve only the domestic market. In the grand scheme of things, though, I take it that more of Dow Chemical’s investments will go abroad. Our strategy for growth says we must participate in emerging markets where we are not as big and are not as omnipresent as we are in the U.S. and Western Europe. That means China, India, Russia, and Eastern Europe. The strategy will also include accessing low-cost feedstocks in places like the Middle East and the Far East. So yes, you’ll see more asset investment in higher-growth markets. Let’s talk about your backgro
