Chemical
substances generated from hydrocarbons, primarily crude oil and natural gas,
are known as petrochemicals. They can also be made from sugarcane and corn,
which are both renewable resources. The chemical structure of petrochemicals is
divided into three categories: olefins, aromatics, and synthesis gas
hydrocarbons. Ethylene and propylene are olefin hydrocarbons, whereas aromatic
hydrocarbons include benzene, toluene, and xylene. In refineries and chemical
plants, processes such as fluid catalytic cracking (FCC), steam cracking, and
catalytic reforming are used to obtain the desired output. Petroleum products
are an essential part of daily living and are in high demand across a wide
range of businesses. Furthermore, petrochemicals are used in a wide range of
common objects, including clothing, houses, autos, toothbrushes, furniture,
irrigation, household items, synthetic detergents, packaging, electronics,
performance products, and medical equipment.
Global Petrochemicals Market Outlook
The Organization
of Petroleum Exporting Countries (OPEC) has a large volume of feedstock or raw
materials available, and the rapid development of shale gas exploration in the
North American region, primarily in the United States and Canada, is expected
to create a highly conducive environment for growth of the global
petrochemicals market. China is one of the world's top petrochemical
consumers. The rapid rise of numerous end-use sectors is predicted to boost
demand for petroleum products, particularly in Asia Pacific growing nations
like India and China. According to the Energy Information Administration (EIA)
of the United States, total liquid fuel consumption in Asia Pacific reached
33.3 million barrels per day (bpd) in 2017, with China accounting for 80% of the
region's consumption. Furthermore, significant advancements in shale gas
technologies, such as hydraulic fracturing, are being investigated in the
United States and Canada to extract petroleum. As a result of these reasons,
the global petrochemicals market is expected to rise rapidly.
Global Petrochemicals Market
challenges
The
petrochemicals industry's major building blocks are natural gas, coal, and
crude oil. While global crude oil output is currently at an all-time high, the
market is very volatile in terms of production and pricing. For companies in
the global petrochemicals market, this volatility is a serious concern. Due to
massive production levels by OPEC and Russia, the market is experiencing an
overabundance of feed stock.
This,
combined with the economic crisis of 2009, has resulted in a sharp drop in
crude oil demand in Europe and Japan. Consumer preference for green energy
derived from renewable sources such as wind and solar energy further stifles
industry expansion.
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