Downstream Real Estate Reflects 'Silver Lining' in Oil and Gas

Downstream Real Estate Reflects 'Silver Lining' in Oil and Gas
Downstream projects represent a key growth area in U.S. industrial real estate sector, according to a new report by JLL.

Cheap hydrocarbon feedstocks are contributing to a boom in the U.S. downstream oil and gas real estate market, according to a new report from the financial and professional services firm JLL.

In its recently released 2016 North American Energy Outlook, JLL attributes the healthy downstream real estate market to 268 projects valued at $170 billion that are either planned or underway in regions such as the Gulf Coast and Appalachia. Some of the more prominent projects include Sasol's ethane cracker in Southwest Louisiana, Shell Chemical's ethane cracker in western Pennsylvania, Chevron Phillips Chemical's U.S. Gulf Coast Petrochemicals project in Texas and PTTGC America's ethane cracker in Ohio.

During a recent conversation with DownstreamToday, Eli Gilbert, energy research director with JLL's Americas Research unit, elaborated on some key findings from the report and explained how the boom in downstream real estate is helping to offset losses in the upstream market and is benefiting other sectors of the economy. Click on the audio clip below to listen to the discussion.

 

AUDIO CAST
JLL's Eli Gilbert chats with DownstreamToday Senior Editor Matthew Veazey about downstream oil and gas real estate.


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