Plastics and chemicals will account for the largest share of global crude demand growth by 2030, and a third wave of petrochemicals expansion underway in the Middle East is looking to cash in on the trend, as investment into downstream petroleum industries will become a critical demand driver for oil markets in the future. Industrialized economies use up to 20 times more plastic and up to 10 times more fertilizer than developing nations on a per person basis, underscoring the huge potential for global growth. The International Energy Agency expects petrochemicals to account for almost half of global oil demand growth by 2050, equivalent to almost 7 million b/d. However, chemicals and plastics have become dirty words for many consumers, with a growing international campaign gaining momentum to ban single-use products like bottles and cups. Despite the environmental backlash, particularly in Europe, Japan and South Korea, which have ramped up recycling efforts, S&P Global Platts Analytics expects demand for the material and other associated materials to remain on a growth trajectory. “Petchems and plastics demand are highly correlated to population and GDP growth,” said Jennifer Van Dinter, Platts Analytics’ global head of NGL and petrochemicals. “The focus at present in… continue reading
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Source: CTRM Center