Plastic recycling threatens oil demand growth
Technology developments could take a chunk out of demand forecasts, but the impact may be just to moderate growth rather than shrink overall demand
Plastic recycling has the potential to displace some future assumed oil demand growth. But, unless the most optimistic technology assumptions come to pass, overall thirst for oil from the plastics industry may continue to grow, with recycling simply moderating the pace. Currently, 85pc of the world’s plastic is incinerated, dumped into landfills or ends up in the oceans. Just 18 developing countries contribute 80pc of this global mismanaged plastic waste. China is by far the largest contributor on 28pc, followed by Indonesia on 10pc. On the demand side, c.9mn bl/d of oil is used to make plastics at naphtha crackers in China, Europe and emerging Asian economies, according to research earlier
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