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
Also in this section
4 March 2025
The US and Canada are boosting capacity builds for renewable diesel and biofuels, while Central and South American countries are investing heavily to upgrade and expand their domestic refining sectors
4 March 2025
EU net-zero polices have shifted refining investment among member states, while across the region countries and companies continue to adjust to changes in trade flows caused by the war in Ukraine
4 March 2025
Gas auctions underperform, signalling a slow start to 2025 after bumper 2024
3 March 2025
The Middle East is focusing on modernisation and expansion projects, while Africa is seeking to reduce its imports of refined products
