Downstream slumbers as plastics backlash grows
Recycling will increasingly alter supply fundamentals, while legislation targeting single-use plastics will erode demand
The oil industry continues to expect that rising petrochemicals use will be central to demand growth over the next two decades. But campaigns against single-use plastics (SUP), which make up about a third of plastics demand, look set to curb that growth while creating new technological and structural challenges for the industry. Petrochemicals feedstock accounts for approximately 13mn bl/d, or about 13pc, of world oil demand, according to the IEA. BP, in its Energy Outlook 2019, that a worldwide SUP ban scenario could curb oil demand in 2040 by as much as 6mn bl/d. SUP products include shopping bags, food wrappings and plastic bottles, which are all under scrutiny by legislators and regulato
Also in this section
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields
23 April 2024
Cheaper Russian barrels and lower overall crude prices have helped cut key oil consumer’s import bills in election year
22 April 2024
Pursuing three different goals as part of the same package may mean achieving none of them
22 April 2024
Beijing’s renewed targeting of NOC management could threaten investment