IEA: Plastic use will become the main driver of global oil demand in 2050

According to the International Energy Agency, by 2050, plastics and other petrochemicals will drive global oil demand and offset the slowdown in fuel consumption.

The IEA said that despite the government's efforts to reduce oil and gas pollution and carbon emissions, emerging economies such as China and India are rapidly developing and will boost demand for petrochemical products.

Oil and gas refining and petrochemical products as raw materials, the basic material is plastic bottles, beauty products, fertilizers, explosives, as well as other products.

IEA said that with the development of electric vehicles, energy efficiency and engine, 2050 traffic expected slowdown in demand for oil, but this will be offset by growth in demand for petrochemical products.

In the discussion of global energy, the petrochemical industry is one of the blind spots; in the next few years, the industry will undoubtedly become the main driver of oil demand growth,' IEA Director Fatih Birol told Reuters.

According to the IEA, the petrochemical industry is expected to account for more than one-third of global oil demand growth by 2030, and will weigh nearly half by 2050.

In 2017, global demand for petrochemical feedstock was 12 million barrels per day, accounting for about 12% of total oil demand. It is estimated that this data will increase to nearly 18 million barrels per day by 2050.

Most of the demand growth will occur in the Middle East and China, as these two regions are building large petrochemical plants.

Exxon Mobil (85.34, -0.24, -0.28%) and Royal Dutch/Shell Oil (68.35, -0.88, -1.27%) Group plans to invest in new petrochemical plants in the next few decades, betting on rising demand for plastics.

The use of plastics is receiving increasing attention, as plastic waste flows into the oceans and endangers marine life, prompting several countries to ban or partially ban the use of plastic bags, or to charge for one-time use.

The IEA report said that the government's efforts to encourage recycling to reduce carbon emissions may only slightly affect petrochemical growth.

'Despite the significant increase in recycling and the promotion of a one-off use of plastics, especially in Europe, Japan and South Korea, these efforts are far from the sharp increase in plastic use in developing countries,' the report said.

According to the most positive hypothetical scenario of the IEA, recycling is expected to reach about 5% of high-value chemical demand.

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