Why dig more oil and gas out of the ground to make petrochemicals when the carbon cost is potentially ruinous for our climate? This might be a question increasingly asked by legislators, shareholders and the general public – rightly or wrongly.
Asian Chemical Connections
YEAR-ON-YEAR chemical company financial results could we improve in Q2-Q4 2023; But this should not be seen as a return to the Old Normal.
Climate change and demographics are economic destiny – their effects cannot be avoided. But the petrochemicals industry has a huge role to play in shaping favourable outcomes
Companies behind the crackers due on-stream over the next four years emphasise the low-carbon output. The planned new plant also have excellent economies of scale
IT REALLY ISN’T doom and gloom if you take the longer-term view. Instead, for the chemical companies with the right strategies, the opportunities to build new sustainable business models are huge. The winners will make an awful lot of money while also doing the right things for humanity and our natural environment.
China’s real estate rescue only involves shoring-up lenders. The property bubble will not and cannot be reflated. Most of the zero-COVID rules remain in place, and will likely stay in place well into 2023
Cumulative downside demand in the above chart would total 5bn – 91m tonnes lower than our base case.
Because companies in all manufacturing and service sectors haven’t been adequately charged for the natural resources they use, and the damage they cause to the environment, we face the risks of catastrophic climate change and more plastic in the oceans than fish.
I WORRY that we face a crisis deeper and more complex than any of us have seen before because of the confluence of geopolitics, demographics, the changing nature of the Chinese economy as Common Prosperity reforms accelerate, China’s rising chemicals and polymers self-sufficiency, the high levels of global inflation with all its causes, and, last but certainly not least, climate change.
THE GLOBAL CHEMICALS industry is, I believe, facing a demand and supply crisis on a scale and on a level of complexity that nobody has experienced before. This is a huge subjects requiring a series of posts. Let me start by looking at China’s role in this crisis. In later posts.