Business Trends: Rethinking the refining and petrochemicals industries
Crude oil has been the fundamental element of transportation fuel for many decades. However, market factors are changing this dynamic, creating incentives for some organizations to consider oil-to-chemical complexes to maintain a competitive edge. Crude oil-based fuels, such as gasoline, diesel and jet fuel, are seeing nominal to flat growth, averaging 0.7%/yr–0.9%/yr. Meanwhile, petrochemicals are growing at a more robust pace, averaging 4%/yr. What factors are driving this disparity? In the fuels sector, market penetration of methanol, ethanol and liquefied natural gas (LNG) continues to increase. This, as well as the slow but steady electrification of the transportation fleet and mandated
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