Extra demand for single-use plastics during the pandemic has combined with lower appetite for recycled goods to lift ethylene prices a bit since April
debate the future of transport fuels. That of petrochemicals—used to make everything from plastic packaging to paint—has seemed unequivocally bright. The International Energy Agency , an industry forecaster, expects them to account for half the growth in oil demand from 2019 to 2025. Better yet, America’s shale boom has furnished cheap feedstock in the form of natural gas. ExxonMobil is spending $20bn on chemical and refining facilities along America’s Gulf Coast, near Texas’s Permian basin.
On paper, the allure of petrochemicals remains strong. If the internal-combustion engine falls out of favour, the thinking goes, even sanctimonious environmentalists will still purchase polyester camping tents and synthetic sandals.
The trouble is that too many big oil companies are making the same bet. Last year the increase in ethylene capacity was 60% higher than the rise in ethylene demand, according to theThe subsequent decline in ethylene prices had little impact on companies’ strategies.
The pandemic does mean that oil companies have less cash for new projects. Cheap oil is also benefiting naphtha crackers in Asia, which produce chemicals from crude, and eroding the advantage of American ethane crackers, which rely on gas. Even so, the coronavirus looks unlikely to sap individual oil firms’ enthusiasm for petrochemicals. . Converting ethane to ethylene is still profitable, says Alan Gelder of Wood Mackenzie, an energy-research firm, “just not as profitable as some hoped”. For many oil companies facing sceptical investors and an upstream business with uncertain short- and long-term prospects, petrochemicals have the dubious honour of being among their least bad options.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Russian mercenaries enter Libya's key oil field - National Oil CorporationUS describes involvement of Russia’s Wagner in Libya as direct assault against the African nation’s sovereignty as Russia’s Putin discusses Libya with French counterpart Macron
Weiterlesen »
Abandoned oil tanker off Yemen coast at risk of explodingAn abandoned oil tanker loaded with more than 1M barrels of crude oil is at risk of exploding off the coast of Yemen, threatening huge environmental damage, the United Nations says.
Weiterlesen »
Russian Fighters Help Tighten Rebel Control of Libya’s Largest Oil FieldMercenaries connected to the Russian government have joined forces with a rebel militia to hold Libya’s largest oil field, European and Libyan officials said, sparking concerns the Kremlin could exert control over key European oil operations in the North African nation.
Weiterlesen »
The World’s Top 10 Oil Producers And ConsumersLast week BP released its Statistical Review of World Energy 2020. Today I take a deeper dive into global oil production and consumption numbers.
Weiterlesen »
Oil falls below $40 on record U.S. inventories, COVID fearsOil slipped below $40 a barrel on Thursday after a more than 5% fall the previous session, as record-high U.S. crude inventories and a resurgence in coronavirus cases cast doubt on a recovery in fuel demand.
Weiterlesen »
Exclusive: Legal tussles snarl millions in oil from Hin Leong dealsMillions of dollars of oil stored in tanks and ships in Asia and Europe has become caught in a web of lawsuits related to trade and financing deals by Singapore's Hin Leong Trading (Pte) Ltd, according to court documents and shipping data.
Weiterlesen »