Big oil back-up plan is falling flat

The oil and gas industry is in crisis. The price of crude oil fell into negative territory at the start of the Cov of the popular, as well as oil giant in recent months to cut dividends to shareholders and wrotedown the value of its assets by billions of dollars. Public Utilities this week abandoned a major natural gas pipeline as wind and solar SmashedRecords. As last month, 17 countries Has set the target stage internal combustion engine of the vehicle.

However Petroleum and chemical products―the Department produces all the plastic to the polyester material of the paint―looks like a safe bet. Exxon Mobil Corporation Cost 20 billion USD In the chemical industry and refineries across the Gulf Coast. Royal Dutch Shell PLC is building A large-scale complex In Pennsylvania loss of ethane, a component in hydraulic fracturing to drill natural gas, into the polyethylene plastic. China’s state-owned oil company last month Open its third Petrochemical facilities in 18 months.

However, there is a”hole in the hedge”as The Economist The magazine announced in print the title last month. The price of plastic resin to decline in the pandemic, and the cheap oil is to weaken the United States Natural Gas the cornerstone of the additional member. Provisions to install a new study shows that plastic pollution is so severe and widespread presence of the fine particles is appeared in the distant choice.

“Petrochemical and plastic will not be how the oil and gas industry growth to get rid of this crisis or climb out of debt,”a report released Thursday by the non-profit organization Center for International Environmental Law concluded. “The plastic market is saturated, and a short-term growth in demand for personal protective equipment will not change the long-term decline in the trajectory of the plastic used.”

Erwin Seba/Reuters

The business model will be in the Smoking.

Plastic is not going anywhere. In 1971 and in 2015 the demand exceeds the of plastic, used for other bulk materials such as cement, aluminum and steel, according to International Energy Agency data. And demand is constantly increasing. By 2050, nearly half of all growth in oil demand is estimated to be from the plastic.

But as oil and gas giants to narrow the scale of drilling and the loss of billions of dollars of existing investment profit margin of plastics and other petrochemical products, is slimming down. The price of plastic resin raw pellets made of vinyl or other material―trapping in March, and if any has been restored, according to a A report by Plastics Technology, Industrial Trade group.

Refineries in Asia and Europe the investment so that the resin from naphtha, a flammable liquid mixture of the distillation of Petroleum, peat or coal. In the United States, where the mining boom made natural gas cheap, the industry and not to build a fleet of”cracker”plant, a huge complex of the tube furnace and heat the ethane component of natural gas into ethylene and polyethylene. The International Energy Agency estimates that 40%of the world’s ethane-based production capacity is in the United States

However, the historic decline in oil prices”substantially eliminates the huge, older competitive cost advantage of North America(natural gas-based polyethylene)production countries enjoy in their international naphtha-based counterparts,” Today plasticTrade publication, reported last month 30th.

Petrochemical and plastic will not be how the oil and gas industry growth to get rid of this crisis or climb out of debt.Center for international environmental law

Regulations, at the same time, a surge of fast global anger is growing of the extent of plastic pollution. The presence of particles of microporous plastics in the ocean, the Great Lakes and even the Arctic snow is well known. However, the researchers found a small bit of air in plastic, 98%of the dust samples collected in the 11 national parks and wild areas, according to a Research Published last month in the journal Science.

By last year, 127 countries Start to regulate plastic bags. Eight States States to prohibit plastic bags as the start of this year. In 2019, the European Parliament voted to ban many single-use plastic items to 2021, and requires member States to collect 90%of the plastic bottles through 2029. In January, China’s largest producer of single-use plastic, start phasing out most non-biodegradable bags, straws and utensils in the next two years.

COVID-19 may reverse this trend. As officials in efforts to control the virus, the industry and its allies began pressing Stop or reverse the ban All over the world. Although the European Union rejected the request of the United Kingdom To postpone its ban In some of the plastic until later this year. In the United States, such States as New Hampshire Banning reusable bags, Due to the fear that they might spread the virus, in favor of single use paper or plastic bags.

In lobbying for the success of Beyond the plastic. Between March and July, 64%of the oil and gas industry’s global efforts to increase financial support for fossil fuel production or rolling back climate regulations are”completely”or”mostly successful,”according to a Research published Thursday through InfluenceMap, a British think tank, tracking the business impact of the policy. Another 26% of the lobbying efforts are ongoing.

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