1 July 2008
Top of the cycle?
THE STRONG profitability achieved in 2006 and 2007 could prove to have been the peak of the present chemicals cycle, if – as forecast – business conditions deteriorate later this year, Martin Quinlan writes. Petroleum Economist's annual survey of chemicals profitability, based on the results of the world's largest chemicals companies and the chemicals subsidiaries of the major oil companies, shows a hint of a decline in 2007. Overall, the sector achieved an average return-on-assets of 10.9% last year – a high figure, but down slightly from the 11.4% of 2006. Profits under threat If a downturn is confirmed in this year's results, 2006-07 will have marked the end of a four-year up-cycle which
Also in this section
5 March 2026
Gas is a central pillar of Colombia’s energy system, but declining production poses a significant challenge, and LNG will be increasingly needed as a stopgap. A recent major offshore gas discovery offers hope, but policy improvements are also required, Camilo Morales, secretary general of Naturgas, the Colombian gas association, tells Petroleum Economist
4 March 2026
The continent’s inventories were already depleted before conflict erupted in the Middle East, causing prices to spike ahead of the crucial summer refilling season
4 March 2026
The US president has repeatedly promised to lower gasoline prices, but this ambition conflicts with his parallel aim to increase drilling and could be upended by his war against Iran
4 March 2026
With the Strait of Hormuz effectively closed following US-Israel strikes and Iran’s retaliatory escalation, Fujairah has become the region’s critical pressure release valve—and is now under serious threat
