Dow CEO: Prices Will Rise, Company Will Grow Abroa
Midland MI, September 21--The energy industry will continue growing with the economy as a better balance between supply and demand leads to price increases, said William Stavropoulos, chief executive of Dow Chemical Co.
The economy is "growing nicely and supply and demand is starting to get in to balance, so we're able to pass some of these cost increases along, and that's opening up margins," he said in an interview on CNBC Monday.
One of the biggest challenges for the industry remains a changing trade balance, Stavropoulos said. The country's positive trade balance has been "wiped out over the last three years because of an ill-conceived energy policy, or no energy policy, where you encourage natural gas usage but discourage exploration and production."
Dow has used its globally sourced products to meet growing demand in other regions, he said.
"What we're doing is new builds are going to be taking place outside the United States where we have a better energy situation, like the Middle East or in Asia, so we can supply those growing markets and we'll supply the Americas from our manufacturing base here," Stavropoulos said.
