"Any further delay in concerted anticipatory
global action on adaptation and mitigation will miss a brief and rapidly
closing window of opportunity to secure a livable and sustainable future for
all."
This statement comes from the Intergovernmental Panel on
Climate Change (IPCC), specifically from its Sixth Assessment Report
(AR6) released in 2022. They’re sounding the alarm. We have a brief and
rapidly closing window to act on climate change. If we delay any further, we’ll
miss our chance to ensure a sustainable, livable future for everyone.
We all know that we're making efforts to reduce emissions,
but global greenhouse gas (GHG) levels are still rising and haven't peaked yet.
By the end of 2021, emissions returned to pre-pandemic levels, driven by higher
coal use in the Asia-Pacific region’s power and industry sectors and a return to
fossil-fuel-heavy activities worldwide.
The rising petrochemical industry..
However, on the positive side, the falling costs of renewable energy, better energy storage, and fast growth in electric vehicles offer us a hope to cut fossil fuels from electricity and transport soon. But unfortunately, at the same time, we observe the demand for petrochemical products, especially plastic is rising. As a result, oil and gas companies see the petrochemical manufacturing as an attractive option to compensate their losses in other markets.
Now let’s take a closer look at what petrochemicals actually
are.
Petrochemicals are everywhere in our daily lives..
Petrochemicals serve as the building blocks for a wide range of
products we rely on every day. If we check how they influence various
industries.
Ø Plastic Packaging: Many everyday items, including food packaging and commercial products, are made from petrochemicals like polyethylene and polystyrene, ensuring durability and safety in packaging.
Ø
Fertilizers: Over half of the world’s
ammonia is transformed into urea, a key fertilizer used to improve crop yields
and boost global food production. Petrochemicals play a vital role in this
agricultural process.
Ø Synthetic
Rubber: The tires on cars, trucks, and bicycles are primarily made from
synthetic rubber, which is derived from the petrochemical butadiene. This makes
tires more durable and reliable.
Ø Household
Products: Many laundry detergents and synthetic clothing materials, such as
surfactants and polyester fibers, are made from petrochemicals, making them
essential for everyday cleaning and apparel.
Beyond these everyday products, petrochemicals are crucial
for making digital devices, medical equipment, and many components of the
modern energy system. They’re used to produce solar panels, wind
turbine blades, batteries, and even electric vehicle parts. Petrochemicals also
play a key role in creating thermal insulation for buildings, helping improve
energy efficiency and reduce environmental impact.
So, petrochemicals are everywhere from agriculture
to everyday products, making our modern life possible and driving innovation
across a wide range of industries.
Surging petrochemicals demand, its current state, and future outlook..
Growth in world oil demand by product, 2023-2030. Courtesy of IEA
As we look at the petrochemical industry today, it's clear
that despite some short-term challenges, it's still on track to become a major
driver of global oil demand. While sectors like trucking, aviation, and
shipping have historically been the big players, we observe that petrochemicals
are steadily catching up, and by mid-century, they’re expected to be the
largest contributors to oil demand. Analysts predict the global petrochemical
market could surpass a trillion dollars by 2030, driven by strong demand in the
Asia-Pacific region, particularly China.
Currently, we see that the industry is going through a
period of adjustment. After facing oversupply and lower demand in 2023, there’s
cautious optimism for recovery by 2024. In fact, competition within the global
market is intensifying. For example, the United States has made a comeback in
low-cost petrochemical production, thanks to the shale gas boom. Today, around
40% of the world’s ethane-based petrochemical output is produced in the U.S.,
though the Middle East continues to lead in low-cost production of essential
petrochemical feedstocks.
When we look at technological advancements, innovation is
key to the industry's future. We observe technologies like 3D seismic imaging
and IoT being widely adopted to enhance efficiency. AI and digital tools are
also transforming production and supply chains, making them not only more
efficient but also more environmentally responsible. These advancements are
helping the petrochemical industry become smarter and more sustainable,
solidifying its place in the global energy debate.
But on the contrary, we cannot simply overlook the
environmental impact that has come with this evolution.
A Threat to Paris Agreement Climate Goals..
This rapid growth presents challenges to meeting the goals
of the Paris Agreement, which aims to keep global warming well below 2°C above
pre-industrial levels. If we look at how the industry expansion affects those
targets.
- Increased GHG Emissions: The petrochemical industry is energy-intensive and as the industry expands, it leads to higher emissions of carbon dioxide and other GHGs, making it harder for countries to reduce emissions and meet the Paris Agreement targets.
- Plastics
and Waste: A significant portion of petrochemicals is used to produce
plastics, which contribute to long-term environmental issues like plastic
pollution and microplastics. The production, use, and disposal of plastics
release emissions, adding to the carbon footprint and further complicating
efforts to reduce global warming.
- Fossil
Fuel Dependency: The growing demand for petrochemicals increases the
world’s reliance on fossil fuels. This conflicts with the Paris
Agreement’s goal of transitioning to a low-carbon economy based on
renewable energy sources.
- Indirect
Emissions: Beyond production, the lifecycle of petrochemical products,
such as the burning of plastics or the use of fertilizers in agriculture,
generates additional emissions. These indirect emissions further strain
efforts to reduce global GHG levels.
A Call to Action..
While we’ve made some progress in
reducing emissions during chemical production, much more needs to be done to
lower the climate impact. Achieving this will require stronger, more
comprehensive actions, including reducing the production and use of petrochemicals.
Advancing green solutions through a circular economy like cutting down on
consumption, reusing products, and improving recycling systems, especially for
plastics, must be a priority.
Innovation in sustainable alternatives is crucial. We need to develop eco-friendly materials and push for policies that support these changes. Only by embracing these green solutions can we ensure the petrochemical industry meets global climate and environmental goals. If we don’t act now, the sector will continue to hinder progress on international targets like the Paris Agreement. It’s up to all of us, industry, policymakers, and society, to come together and make sustainability the new standard.
Join us in our next article as we explore the exciting world of Clean Technology, inspired by the International Energy Agency's vision for a greener chemical future.
References:
1. https://www.iea.org/reports/oil-2024
4. https://www.iea.org/reports/the-future-of-petrochemicals
5. https://www.statista.com/statistics/696921/petrochemical-market-value-worldwide/
6. https://www.sciencedirect.com/science/article/abs/pii/S0959652624028798#preview-section-abstract
7. https://www.sciencedirect.com/science/article/pii/S1462901123002897#sec0005
8. https://www.plasticsengineering.org/2024/02/petrochemical-industry-trends-2030-003170/
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