26 June 2015
Demand for naphtha decreases as gas based chemicals increase
A rapid swing in chemicals feedstock use is set to upturn refinery operations worldwide
Rising shale gas and oil output has transformed the US’ chemicals industry – but with consequences for refiners worldwide. As US low-priced, gas-based chemicals production goes up, the demand for naphtha – a chemicals feedstock in much of the rest of the world – is set to decline elsewhere. At the same time, rising tight or shale oil and gas production in the US is bringing more naphtha to market, turning a once-scarce stream into a substantial surplus. Only eight years ago, the chemicals industry in the US was generally believed to be on its last legs as local feedstock costs were high and rising while facilities in the Middle East profited from heavily subsidised gas. But the US is now one
Also in this section
22 April 2026
The failure of OMV Petrom’s keenly watched exploration campaign at Bulgaria’s Han Asparuh block highlights the Black Sea’s uneven track record, despite major successes like Neptun Deep and Sakarya
22 April 2026
Sustained strikes on ports, terminals and refineries are testing the resilience of Russia’s oil export system, yet rapid repairs, rerouting and surging prices mean the campaign has yet to deliver a decisive blow
21 April 2026
After overcoming a COVID-induced demand collapse with several years of successful market management, geopolitical events have conspired to provide the pact’s biggest test to date
21 April 2026
The regime’s policy of using nuclear ambiguity as a deterrent may have failed but it has realised it has other cards to play, while its neighbours are reappraising their approach to security
