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2. The Chemical Sector
Pages 18-28

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From page 18...
... Many more of the products we use daily -- paper, fabrics, cosmetics, and electronics -- are produced using the products of the chemical industry. The chemical sector is a key part of the national economy: while its products represent only 2 percent of the U.S.
From page 19...
... CHEMICAL CATEGORIES Virtually all chemical manufacturing, storage, and use in the United States fits into one of the following categories: · Petrochemicals and fossil fuels · Inorganic chemicals including fertilizers · Industrial gases · Specialty chemicals · Pharmaceuticals · Consumer products.2 A description of each of these categories, including a generalized discussion of the manufacture, transport, and use of the chemicals within that category, is given below: Petrochemicals and Fossil Fuels This category entails chemicals produced from hydrocarbon feedstocks, such as crude oil products and natural gas. It includes such chemicals as hydrocarbons and industrial chemicals (e.g., alcohols, acrylates, acetates)
From page 20...
... Many of these chemicals, such as chlorine, ammonia, and ammonia-derived fertilizers, are produced and purchased in large volumes as commodity chemicals and may rely on natural gas or crude oil as a feedstock. They are used both as building blocks for other manufactured goods and as end products in themselves (e.g., chlorine, ammoniaderived fertilizers)
From page 21...
... THE CHEMICAL SECTOR 21 Location of Storage and Use. Fertilizers are stored and used throughout agricultural areas.
From page 22...
... Some specialty chemicals are toxic. Location of Production.
From page 23...
... All of these items are available to the general public and are sold in packaged form in retail stores, by mail order, and on-line. THE CHEMICAL SUPPLY CHAIN The description of the chemical categories above includes some specific characteristics of feedstocks, manufacturing, storage, and use for each.
From page 24...
... The chemical supply chain also has dominant nodes -- small geographic areas where large concentrations of products or intermediaries exist, (e.g., the Gulf Coast) or connecting points (dominant links)
From page 25...
... system software is designed to shut down a process when it exceeds safe operating parameters, but it is not the primary safety system in a well-designed chemical production facility. Good process design in the chemical industry also includes safety shutdowns that are independent of the SCADA system.
From page 26...
... Strong competition has ensured that manufacturers have contingency plans in place to meet customer demands in the event of a disruption to their manufacturing capacity. These include product stockpiles, plans to shift manufacturing to other locations, plans to assist customers in shifting their processes temporarily to similar but alternative products, and in the case of large-scale interruption of manufacturing capacity, cooperative agreements between competitors during emergencies to ensure that critical needs for a given chemical can be met.
From page 27...
... Hurricanes, most recently Hurricane Katrina, have shut down significant portions of the nation's petroleum and natural gas supply (key feedstocks to the chemical industry) , with subsequent economic loss but without catastrophic economic consequences.
From page 28...
... Agricultural chemicals and pharmaceuticals are the areas most likely to be impacted by single suppliers of specialty chemicals. However, major herbicides and fungicides have alternatives that perform as well or almost as well, so that normal agricultural practice can continue should the supply of preferred product be disrupted.8 Likewise, pharmaceutical manufacturers typically stockpile two to three months' supply of their products as a contingency against disruption of their manufacturing capacity.


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