Report : Petrochemicals Industry Could Face Peak Demand for Plastics By 2027

Global demand for plastics could peak in just seven years as countries impose bans and taxes to curb plastic pollution, putting billions of dollars of petrochemical investments along the Gulf Coast at risk, according to a new report

The annual increase in demand for plastics is expected to fall from 4 percent a year to less than 1 percent starting in 2027, according to a report released Friday by Carbon Tracker, a nonprofit financial think tank focused on the risk of climate change, and environmental services firm Systemic.

Remove the plastic pillar holding up the future of the oil industry, and the whole narrative of rising oil demand collapses,” said Kingsmill Bond, a Carbon Tracker energy strategist, and the report’s lead author, in a statement

The report follows decisions by some oil majors to pull or delay investments in petrochemicals, particularly after the coronavirus pandemic wiped out global demand for crude and petroleum products.

The world’s biggest oil company, this week said it is abandoning plans to build a $20 billion crude-to-chemicals plant in Saudi Arabia, according to Bloomberg. And BP this summer announced a deal to sell its global petrochemicals business to British petrochemicals company INEOS for $5 billion.

Meanwhile, many countries are combatting plastics pollution with taxes and bans on plastics, including well-publicized bans on the use of single-use plastic bags and straws. Carbon Tracker estimates that 40 percent of plastic waste ends up polluting the environment, including 11 million tons into oceans every year.

Source:Mrt

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