By: ICN Bureau
Last updated : March 06, 2018 8:18 pm
Georgia-Pacific Chemicals will expand capabilities at its Lufkin, Texas, facility to increase production of resins used to coat proppants for oil and gas extraction.
Georgia-Pacific Chemicals will expand
capabilities at its Lufkin, Texas, facility to increase production of resins
used to coat proppants for oil and gas extraction.
"This expansion will help us capitalize on an exciting growth opportunity in the
energy field," says Michael R. Roberts, vice president, GP Chemicals. "It allows
GP Chemicals to better serve our customers in this segment and to support the
expected growth in demand for resin to coat proppants. This coating helps
provide the proppant with additional strength and the ability to withstand
stringent operating conditions."
The need for resin for proppants is driven by the rapid growth of hydraulic
fracturing in the last few years. The use of proppants in hydraulic fracturing
results in much higher recovery rates of oil and gas than previously possible.
The process has enabled oil and gas extraction from deposits that were
impractical to tap, increasing the United States' natural gas and oil production
capacity.
"In addition to the work already underway at the Lufkin facility, we continue to
evaluate additional manufacturing expansion in this segment," says Rick Urschel,
president of GP Chemicals. "The ability to maximize the recovery of oil and
natural gas from U.S. reserves is a goal of the energy industry. This
manufacturing expansion will help our customers meet the growing demand for
products that can assist in addressing that goal."
Georgia-Pacific LLC, of which GP Chemicals is a subsidiary, is owned by Koch
Industries. This investment in Texas is the latest in a long history of
investment in the state by Georgia-Pacific and other Koch companies. In Texas,
Koch companies employ more than 5,600 people directly and support nearly 33,000
Texas jobs in total. Total annual compensation and benefits of Koch companies'
employees is approximately $650 million in Texas.