August 20, 2020 Read More →

Risks of focus on plastics grows for oil and gas business

Energy Fuse:

The pandemic and market downturn blew a hole in global oil demand forecasts, confining hundreds of millions of people to their homes, at least for a period of time. While the lockdowns were brief, the economic fallout will not be. There is now a very contentious debate among market analysts over whether or not the world has already hit peak oil demand.

Gasoline demand has bounced back while aviation could take years to recover. To some, the pandemic has accelerated the energy transition, to others, crude demand will bounce back and continue to grow. But one of the oil industry’s most promising growth markets – petrochemicals – is showing signs of trouble. The problems pre-date the pandemic, but the economic slowdown has exacerbated the weakening trend.

“We’re seeing a deterioration of the plastics market right before our eyes,” Tom Sanzillo, finance director at the Institute for Energy Economics and Financial Analysis (IEEFA), said at a conference in July.

[Nick Cunningham]

More: Oil Industry’s Gamble On Plastics Looks Increasingly Risky

Posted in: IEEFA In the News

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