OECD petchem sector oil use to stay flat over next 25 years - OPEC

08 November 2011 15:19  [Source: ICIS news]

LONDON (ICIS)--Oil use in the petrochemicals industry will stay relatively flat in the OECD over the next 25 years with the region's share falling to 44% in 2035 from the 2010 level of 57%, OPEC said on Tuesday.

The World Oil Outlook 2011 report predicts that non-OECD (Organisation for Economic Cooperation and Development) demand for oil in the petrochemicals industry will exceed that of the OECD countries by 2024.

It also projects that demand in developing countries will rise to 5.3m bbl/day by 2035, higher than OECD oil use in the sector.

“As expected, the only significant demand growth is in OPEC and developing Asia,” it said.

Currently, the highest level of consumption is in OECD countries, with 61% of total global use, while OPEC and developing Asia countries consume around 30%, the report added.

“Oil use in the petrochemical sector accounts for over 10% of total oil use and the prospects for growth in this sector are an important element in assessing future demand patterns,” the report said.

The report added that growing demand for plastics, synthetic fibres, synthetic rubber, detergents, paints, adhesives, aerosols, insecticides and pharmaceuticals, both for domestic consumption and for trade, underpins the sector’s demand rise.

“Petrochemicals are being increasingly used by a plethora of economic sectors to help develop new products or to replace more costly or less effective conventional materials,” the report said.

“Consequently, petrochemical demand is mostly driven by economic growth in sectors where these products play a major role, such as transportation, manufacturing and construction,” it added.

By: Leigh Stringer
+44 208 652 3214

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